Determine Optimal Bids in Search Engine Advertising

Search engine advertising (SEA) has grown into a multibillion-dollar business that attracts $1 of every $2 spent on online advertising. A major reason for the popularity of SEA is its unique ability to customize an ad to the keyword for the consumer’s search. This customization enables advertisers to attract highly qualified visitors, already interested in buying, to their websites. Yet, this attractiveness is not free of charge because advertisers need to pay for each click that they receive on their ads. Because consumers use different keywords and combinations of keywords to search for products, typical SEA campaigns contain hundreds to thousands of keywords. Advertisers frequently experience situations, in which some of these keywords are profitable while others are not.

This wide range of rather good and rather bad experiences provides a compelling reason for why you should use PROSAD to determine optimal bids. It provides you with a quick and easy way to answer the question of how large your optimal bid for a keyword should be. After entering some information about your business and the keyword itself, PROSAD calculates your optimal bid for the corresponding keyword.

PROSAD is a service provided free of charge. You do not have to register or sign up. At the end, you may forward the results to any e-mail address.


If you would like to know more about PROSAD, we recommend you to read the following article

Skiera, Bernd / Abou Nabout, Nadia (2012): "PROSAD: A Bidding Decision Support System for PRofit Optimizing Search Engine ADvertising", Marketing Science, 32(2), 213-220, Finalist in the Gary L. Lilien ISMS-MSI Practice Prize Competition.

Marketing Science


If you would like to know more about PROSAD, we recommend you to watch the following video.

MIT Video

calculate your optimal bid

Prof. Dr. Bernd Skiera

Bernd Skiera is chaired professor of electronic commerce at Goethe-University in Frankfurt, Germany.

Bernd Skiera

Prof. Dr. Nadia Abou Nabout

Nadia Nabout is Professor of Interactive Marketing & Social Media at Vienna University of Economics and Business (WU Wien), Austria

Nadia Abou Nabout