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J·BJon BishopIndependent growth marketer

Advertising · Observational marketplace study with controls for sellers’ self-selection into sponsored search/social endorsement.

An Empirical Analysis of Seller Advertising Strategies in an Online Marketplace

Information Systems Research · 2020

Haoyan Sun, Ming Fan, Yong Tan

Summary

Both tools increased traffic; only sponsored search significantly increased sales. Sponsored search worked better for low-reputation traffic and high-reputation sales; endorsement sales effects appeared only for high-reputation sellers.

For your marketing

Possible founder application

Use it to shape a local channel or message test; account for audience, timing and attribution limits before reallocating budget.

Reported result

What the study found

Both tools increased traffic; only sponsored search significantly increased sales. Sponsored search worked better for low-reputation traffic and high-reputation sales; endorsement sales effects appeared only for high-reputation sellers.

Research question

What the authors investigated

How do sponsored search and social-media endorsement affect seller traffic and sales, and how does reputation moderate effects?

Design

Observational marketplace study with controls for sellers’ self-selection into sponsored search/social endorsement.

Sample and setting

Sellers at a retail e-commerce platform; traffic, sales, advertising tools, and seller reputation.

Scope and transfer

Limitations to keep in view

Results are from one retail e-commerce platform and nonrandom strategy choices, although the analysis controls for self-selection; transferability to other marketplaces is not established.

Research sources

Publisher abstract explicitly says the study analyzes two advertising tools, controls self-selection, and reports traffic/sales and reputation heterogeneity. Direct publisher-page retrieval was recorded on 2026-10-09; this profile uses publisher metadata/abstract and does not claim independent review of unavailable full text.

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