New study analyses complex relationship between Paid and Organic Search Marketing, to discover the optimal balance on a search engine results page
In a new study analysing the relationship between Paid and Organic Search Marketing for a major retail division of Hewlett Packard (HP) in the United States, the key findings from the report uncovered the following interesting details:
- Paid Search drives higher Net Revenue per Visit (Paid Search revenue minus the direct media costs from those clicks) than Organic Search
- Even with the Organic result at first position, consumers still click and convert on Paid listings 39.6% of the time
- Paid Search is the only viable option when Organic results fall off the first page, garnering 93.1% of a keyword’s Click Share (percentage of total clicks achieved when both a Paid Search and Organic listing appear together)
- Organic Search drives a slightly higher Click Share (52.4% vs. 47.6%) and Net Revenue Share (53.5% vs. 46.5%) on brand keywords versus Paid Search
- Paid Search performance outpaces that of Organic Search for non-brand keywords with a 77.2% Click Share and a 70.3% Net Revenue Share
“Putting campaigns on auto-pilot is not an option, since the paid and organic search marketplaces are in constant motion. Ranking factors fluctuate, competitors enter and leave the market, and consumer behaviors continuously evolve,” says Alan Osetek, Global President of Resolution Media. “Resolution strives to help brands like HP balance the roles of organic and paid search, search within digital, and digital as a critical part of discovery marketing.”
Aaron Goldman, chief marketing officer at Kenshoo adds, “This research puts to rest the controversy over running paid search advertising for brands that have strong organic coverage. Our study shows that visitors arriving from paid search are more profitable than those arriving from organic search, even when you take into account traffic acquisition costs. Smart marketers are embracing a holistic approach to search engine marketing to get the most out of their investment.”
The complete report, entitled The Search Sandbox: Paid plays well with Organic, can be downloaded at www.ResolutionMedia.com/us/white-papers/SearchSandbox.
From: Resolution Media
Follow the Magazine:
(After you have filled in your email address in the column at the right hand side of the screen, a confirmation email will sent to your email address. You will have to confirm it before subscription begins)
Follow us on Twitter:
Like us on Facebook:
**As part of the Magazine’s drive to reward subscribers/followers, we will be providing subscribers/followers special access to exclusive content which will not be otherwise available to normal visitors. Please be sure to subscribe to the Magazine. Many visitors have given us positive comments that they will be bookmarking the site, but as the system is unable to capture a working email address to which the passcodes for exclusive content will be sent, they will miss out on this content. Do note that passcodes are locked to each exclusive content, not a one-for-all access, so do provide a working email address that you check regularly so as not to miss out on them!