Evaluating the performance of demographic targeting using gender in sponsored search

In this research, we evaluate the effect of gender targeted advertising on the performance of sponsored search advertising. We analyze nearly 7,000,000 records spanning 33 consecutive months of a keyword advertising campaign from a major US retailer. In order to determine the effect of demographic targeting, we classify the campaign’s key phrases by a probability of being targeted for a specific gender, and we then compare the key performance indicators among these groupings using the critical sponsored search metrics of impressions, clicks, cost-per-click, sales revenue, orders, and items, and return on advertising. Findings from our research show that the gender-orientation of the key phrase is a significant determinant in predicting behaviors and performance, with statistically different consumer behaviors for all attributes as the probability of a male or female keyword phrase changes. However, gender neutral phrases perform the best overall, generating 20 times the return of advertising than any gender targeted category. Insight from this research could result in sponsored advertising efforts being more effectively targeted to searchers and potential consumers.