Evidence that Pay Per Click PPC Supplanting Organic Results in Google

According to WordStream, a PPC technology and search engine marketing software company that just published some research on the state of Google search:

  • The click-through rate of paid search advertisements on Google now outnumbers ‘free’ organic search result listings by nearly a 2:1 ratio for high commercial intent keyword searches conducted in the U.S.,
  • When people are searching in order to investigate or make a purchase, over 64% click a sponsored result.
  • Google has also increased the on-screen real estate for paid ads for high commercial intent keywords. In some cases, between the top of the page and the right-hand side, sponsored ads take up approximately 85% of “above the fold” pixels. As a result the top three sponsored ad listings generate for over 40% of clicks on those pages, and product listing ads 19%.
  • Total click-through rates for Google ads on high commercial intent queries are up to 600 times higher than the click-through rates for ads on a typical Facebook page.

Source: http://www.inc.com/jeff-haden/how-google-is-killing-organic-search.html and http://www.wordstream.com/blog/ws/2012/07/17/google-advertising

Here is an infographic with all that data and more:

[Read more...]

Why You Should Purchase Your Brand Name In Google AdWords and PPC

“Even if you rank wellSEO wise, for your brand, you probably don’t for the long tail variations of your brand. Google stated this week that in 2/3rds of branded searches, the click goes to the paid ad. It’s just a big missed opportunity.”

This great quote  from Jeff Ferguson, CEO of consulting group Fang Digital when talking about common PPC blunders.

Travel Stats from Google’s new thinkinsights

Google has a new portal for users to discover interesting stats: thinginsights

I discovered this there:

  • 62% of personal travelers use search engines as the number one source for travel information. Google/OTX, Traveler’s Road to Decision 2010, U.S, Sept 2010

  • 51% of business travelers use mobile devices to get travel information, more than double the rate of two years ago. Google/OTX, The Traveler’s Road to Decision 2011

  • 46% of personal travelers are watching travel-related videos, versus 36% two years ago. Google/OTX, The Traveler’s Road to Decision 2011

Adwords Stats (non-travel)

  • Over 89% of traffic generated by search ads is not replaced by organic search results when ads are paused. Google, Search Ads Pause Study, Global, Jul 2011

  • Two-line sitelinks increase click-through rates by more than 30%*. Google Internal Data 2011, *Compared to standard Adwords ads

Video ads can help your Brand Search:

  • Consumers exposed to a YouTube homepage ad are 437% more likely to engage in a key brand activity on the same day than those unexposed.

SEO vs PPC ROI data and infographic

Thanks to Patrick Gavin from the DIYSEOBlog for a great infographic on the value of SEO vs PPC

Data includes: [Read more...]

US Search Engine Marketing Spend 2008 and 2009

Wow… 88% of Search Engine Marketing budget is PPC, not organic search.  Compare that to the previous post which demonstrates that 88% of click traffic comes from Organic, not PPC.

Is something screwy here?

  • 2008 SEM spending totalled $13.4 billion
  • 2009 SEM spending is projected to rise to $14.7 billion
  • Long term projections show a total SEM spend of $26.1 billion in 2013
  • Paid placement accounted for 88% of 2008 spending, or $11.9 billion
  • Organic SEO accounted for approximately 11% of 2008 spending, or more than $1.4 billion
  • Additionally, the market for SEM technologies, including leasing, agency solutions and in-house development, accounted for 1.1% of overall 2008 spending, or $141 million.

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PPC vs Organic Search Usage by Consumers

According to Enquisite, 89% of all search engine clicks are driven through the organic search area and only 11% (or 10.53% of all clicks) are driven through Pay-per-click (PPC) or sponsored search.

Thanks to SEOMoz for this handy chart.

Web Surfers Trust Organic Over PPC and Prefer It

In Axandra’s How Much is a Top Google Ranking Worth we learn that web surfers:

  • Click natural search results much more often.
  • Trust natural search results more.

The article continues to share several good pieces of data on the matter:

  • An iProspect study showed that 60.5 percent of Google, Yahoo!, MSN and AOL users selected a natural (unpaid) search result over paid search result as the most relevant on a sample query.
  • 60.8 % of Yahoo! and 72.3% of Google search engine users chose a natural search result as the most relevant
  • In addition, studies by Enquiro and iProspect revealed that 60.5% to 70.0% of users trust organic results while only 30% to 39.5% of users trust paid results.

Keep in mind, that “other” 30-40% that trust paid search is a big market itself…

Average PPC Price in Travel 76 Cents and Rising

Source: SearchEngineWatch

Average Search CPC by Category, February and March 2008
Category CPC March ($) CPC February ($) Change (%)
Total finance 2.65 2.43 9
Credit 3.30 2.65 25
Mortgage 2.32 2.05 13
Auto finance 1.57 1.47 7
Insurance 8.88 7.87 13
Travel 0.76 0.72 6
Automotive 0.50 0.50 0
Retail 0.39 0.37 5
Dating 0.38 0.37 4
Source: Efficient Frontier 2008