Organic Search Listings Boost PPC Ad Effectiveness
By Anna Johnson on November 30th, 2009Research by Professors Anindya Ghose and Sha Yang of the New York University Stern School of Business indicates that having organic search listings and paid listings appear at the same time for a given search boosts the chance of having your paid ad clicked.
Based on a panel dataset of consumer responses to keyword based results on Google, the researchers found that:
Organic listings tend have a 3.5 times greater impact on paid ad clicks than vice versa;
Having both organic and paid listings display simultaneously results in 6.15 percent greater profits than when either type of listing is used alone. The impact on profits is greatest in relation to advertiser-specific search queries and weakest for search queries including brand-specific and generic keywords.
Internet marketers tend to experience higher click-through rates (5.1 percent higher), conversion rates (11.7 percent higher) and total revenues (54 percent higher) when both paid and organic listings appear at the same time, than when only the organic listings appear.
