Growth5 Blog

Thursday, August 27, 2009

Paid Search vs. Organic: For Retail, Paid is Better

The NY Times posted this short article on paid search vs. organic search in retail. The article is based on a study by Engine Ready, an internet marketing company. The findings:
1. Visitors that get to retail sites from sponsored/paid links at the top and right side of the Google results page are more likely to buy than those who clicked on the organic (non-paid) results.

2. The average order of a paid linker is $11 higher than those that click on the organic results, at $117.06.

3. Engine Ready speculated that shoppers might be turned off by the tricks that make a site show up higher in the organic Google Rankings.
The idea that "some company paid for this" via a paid search ad gives the perception that it might be more legit than if they didn't. Anyone can get an organic search result, "who knows what I'm about to click on."

Also, paid search ads often have the benefit of trusted brand recognition. We are more likely to click a paid search ad for a product on Amazon.com and use our credit card than we are to click the organic result for Uncle Chuck's Music Hut and make a purchase.

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