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Research Briefs

Path to Purchase

A Mutually Exciting Point Process Model for Online Advertising and Conversion

This study led by Georgia Tech Professor Dr. Lizhen Xu and Co-Authors Dr. Jason A. Duan, University of Texas, and Dr. Andrew Whinston, University of Texas, introduces a new model that measures the effects of ALL of the online advertisement clicks on purchase conversion.

Results of the study show that the commonly used measure of conversion rate is biased in favor of search advertisements and underestimates the conversion effect of display advertisements. In addition, their model includes a useful tool to predict future purchases and advertisement clicks for the purpose of targeted marketing and customer relationship management.

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