Google Study: PPC Ads Do NOT Cannibalize Your Organic Traffic

It is very common in the Internet Marketing and SEO business that we receive the question: “Does PPC take away from our organic? Or visa versa?”  While we do have our own tests and can show that it helps and not detract from organic results, customers sometimes just want more hard facts.  Queue Google.  We’re not entirely sold on Google’s opening up their internal study for all to read just purely for the kindness of their hearts, no… they are a multi-billion dollar Goliath and are always looking to refine their bottom line.  While the science in the report makes sense, validates most of our experience and research, it’s just kind of hard to take it all at face value.  However, we believe it is worth the read!

Google Study: PPC Ads Do NOT Cannibalize Your Organic Traffic

by Matt Van Wagner

 

Though I’ve never met him personally, I admit to being a big Hal Varian fan. For those who don’t recognize the name, Dr. Varian is the Chief Economist at Google and like me, one of the oldest guys in his company.

Over the past few years, he and his team of researchers have made my life simpler by providing pithy answers to some of search’s mythically difficult questions, like “How do search auctions work?” and “Does ad position effect conversion rates?

Last week, his team at Google released the results of their research that answers a question that paid search managers across the world get asked on a regular basis: “Why the [bleep] are we advertising on our own [bleeping] brand terms when we are ranked #1 for those [bleepety-bleep-bleeping] terms already?  [Bleep]!”

Though the Google research team posed the question in a slightly more scientifically-fashionable way for their research, they essentially set out to answer the question of whether or not paid search ads cannibalize traffic from corresponding organic listings for the same keywords.

Their findings, in true Varian-esque style, were simple, direct and memorable. They found that paid search ads give you a 89% incremental lift in site visitors – above and beyond traffic you would normally expect from your organic listings.

You can download the study at the Google Research Blog:  “Incremental Clicks Impact Of Search Advertising” by David X. Chan, Yuan Yuan, Jim Koehler and Deepak Kumar.

Is A Google Study That Proves Google Paid Search Works Valid?

You don’t have to be a committed cynic or skeptic to question the results of Google’s research on its own search properties. It’s only natural to raise the question of self-interest, but since Google has made no bones about the fact that it is their own research, they are being upfront and candid.

In their report, they provide pretty good detail on their methodology and their statistical methods though it is provided only in summary form.

But, in fact, the study seems to support the prevailing conventional wisdom in our industry and even some earlier studies on the impact of paid advertising on brand terms and natural traffic. It certainly supports Brad Geddes findings in his Search Engine Land column last week, “Should You Bid On A Keyword If You Rank Organically For That Term?

 

Read the entire article at: Search Engine Land

 

New Google Analytics Dashboards

You may have noticed that there is a new version of Google Analytics available.  Perhaps this is old news (and certainly in the blogosphere that could be only minutes!) but we are loving it.  Beyond the new widget capabilities, social interaction tracking, and the new look, it seems a little easier to use.  We’ll be posting more on this later but we found this article about gaining more insights with the new Google Analytics and thought we should share!

 

How To Gain Great Insights With Google Analytics Dashboards

by Klaas Knook

 

Google recently released its new Analytics interface to all of their users. Personally, I think that one of the biggest improvements is the ability to create multiple dashboards as well as the flexibility of widgets to customize your dashboard with essential metrics. This post will elaborate further on:

  • how to create (multiple) dashboards
  • the possibilities of the new dashboards
  • a few examples for your own dashboards
  • suggestions for new features

Multiple Dashboards

Google Analytics Dashboard OverviewThe new Google Analytics gives you the power to create up to 20 custom dashboards for each profile. This makes it perfect to create a separate dashboard for each department in your organization or for each traffic source.

The figure at the right shows an example of one of my own accounts with seven different custom dashboards; one for the total overview and six dedicated to a specific traffic source.

This gives the user the possibility to get a rapid and good overview of what each traffic source is doing in terms of the selected metrics like visits, bounce rate, goals, revenue, etc.

For a deeper analysis of a specific traffic source, the user can dive deeper into the different Google Analytics reports or create custom reports.

 

Read the entire article at: Search Engine Land

Google’s $64 Billion Economic Impact

The impact of Google and its available tools are too undeniable of a valuable asset to the small and medium sized businesses. From Google Adwords and Google AdSenese to Google Analytics and now Google Boost, a business can determine its market space on the Internet, track conversions and give to layman sophisticated tools to gain market share and increase revenue. This sounds all well and fine for most businesses, and from our point of view at Denver Media it is completely accurate. However, where is the quantifiable proof these tools have that big of an impact? From our experience running SEO and SEM (Search Engine Marketing) campaigns, it is unquestionable and easy to see.  But most business owners are either in the dark or in denial. If one is in the dark, then we hope to help turn on the lights and show you around a bit, however if one is in denial then the earth must still be flat.

Google released it’s latest numbers showing its impact of the U.S. economy, and large increase in 2010 over 2009. Below is an article from our friends over at Search Engine Land.

 

May 16, 2011 at 4:06pm ET by Pamela Parker

In conjunction with National Small Business Week, Google is trying to burnish its image by touting the economic impact that its programs, including AdWords and AdSense, have had on the U.S. economy. According to the company, Google provided $64 billion in economic activity for American businesses and non-profits in 2010, 18% greater than the 2009 number.

The company says nearly 1 million U.S. businesses and non-profits earned income from Google tools in 2010. For every $1 a business spends on Google AdWords, the company claims, they receive an average of $8 in profit through business generated via both Google Search and AdWords. The numbers are based on a complex formula developed by Google’s chief economist Hal Varian. It starts with the assumption that every business gets $2 in business for every $1 spent on AdWords — an assumption based on data across a large pool of advertisers. Then it assumes that, for every ad click, advertisers get 5 clicks on their organic search results. More methodology from Google here.

Read Entire Article at: Search Engine Land

Search Engine Rankings – April 2011


From our partners over at OnlineMarketingDenver.net the article below outlines the new comScore ratings from last month and the changes in search engine market shares.

Read their blog at: Online Marketing Denver

comScore recently released April 2011search engine rankings report.  This report shows overall market share / usage of the top search engines.

Here is the recap in order of usage:

  • Google search market share fell to 65.4 percent, a loss of .3 percent in March.
  • Yahoo grew to 15.9 percent, a gain of .2 percent.
  • Bing grew to 14.1 percent, a gain of .2 percent.
  • Ask fell to 3 percent, a loss of .1 percent.
  • AOL fell to 1.5 percent, a loss of .1 percent.

The graph below shows search query’s in millions.  Americans conducted more than 18.0 billion total core search queries in April. Google Sites ranked first with 11.6 billion searches, followed by Yahoo! Sites with 3.2 billion and Microsoft Sites with 2.5 billion according to comScore.

comScore April Search engine marketing search mapSource: comscore.com/Press_Events/Press_Releases/2011

Most of the customers I consult with have been content running on the Google network alone, however the data above shows that limiting yourself to one network is only allowing you 65.4% coverage.  This means that they are missing 34% of potential customers/clients/or patients.  I always recommend we run all tier one search engines and allocate the budget appropriately, this way we have the broadest reach and will be available to 98% of the searches conducted.

With this in mind, Chris has the ability to provide accurate data as it relates to the conversions (CBO – Conversion based optimization) that come from each search engine independently, and he is able to move money between engines providing less impact to those that have better results.  Often times those customers that were just running on Google get far better results from other engines.   This is just one more reason that running your program with the largest provider of local internet search to SMB’s in the United States just makes sense. Chris can provide you solutions that small boutiques can’t touch.

Use a Heat Map to Boost Website Usability!

You’ve created the website, optimized a landing page but still have lingering questions as to where the users may be clicking.  And in this case conjecture or speculative results aren’t the ammunition you’re looking for in conversion oriented research.  The technology has been around for a while and is another good tool the SEO arsenal — Heat Maps.  Denver Media leverages heat mapping, amongst other tools, to determine the look, conversion targeting status and other parameters with the help of the heat map.  It is a great tool that you should look into.

Below is an article by Pixelrage (real name: Mark) and is a Squidoo Lensmaster since 2007.

Use a Heat Map to Boost Website Usability!

It’s been proven that websites have specific areas where human eyes always spend the most time. “Heat maps” have been created with this data, and they help you choose the best place to stick your PPC & affiliate ads. Read on!

What’s a Heat Map?

Through years of research in web marketing, patterns have been seen in the ways that people not only navigate the web, but web sites and even web pages. All of this data was compiled by marketing firms and used to create a heat map.

Heat maps are charts that show us where most people look when they open a web site or page, by human instinct. The map displays regions colored yellow, orange and red – the darker the color, the more high-profile the spot is.

What it all means to you: simply look at a heap map before you design your next web site, plan to remodel your existing one, or are planning on remodeling your online advertising campaign, and make sure the ads are placed in the “hot spots!”

 

Read more at: Squidoo

Google’s Mobile Ad Study Results

Google is no stranger to the ad market.  With Adwords, Boost, Tags and other methods Google has managed to monetize the search industry to an almost finite degree.  Continuing on that path Google worked with Ipsos OTX in the end of 2010 to study the effectiveness of mobile ads.  Below is a great analysis of their data and a nifty video.

 

Google: 50 Percent Of Those Exposed To Mobile Ads Took Action

Apr 26, 2011 at 2:18pm ET by Greg Sterling

Google today released findings of a smartphone-user study that the company did with Ipsos OTX at the end of 2010. The sample consisted of 5,000 US adults who owned a smartphone and accessed the mobile internet. Most of the findings reinforce other studies that show how widely people now rely on smartphones across a spectrum of interests and needs.

Coming out of the research Google identified three major consumer usage patterns in the data. It described those the following way:

  • Action-oriented Searchers
  • Local Information Seekers
  • Purchase-driven Shoppers

Heavy Usage at Home, with Other Media

Like Yahoo, Performics, InsightExpress and others, Google found that there’s heavy smartphone usage at home. The survey found that 93 percent of smartphone owners use their phones within the home. Thirty nine percent said they used their smartphones “while going to the bathroom” and approximately 20 percent would give up cable TV before their smartphones.

The survey also found that 81 percent of users “browse the internet” and 77 percent of smartphone owners use mobile search. However it’s not clear what “browse the internet” means here; browser vs. app usage generally wasn’t explored in the survey.

Google said that 72 percent of smartphone owners use their devices “while consuming other media,” a one-third while they’re watching TV.

 

 


Google’s Panda Update Goes Global

High-quality sites algorithm goes global, incorporates user feedback

Monday, April 11, 2011 at 12:00 PM

Over a month ago we introduced an algorithmic improvement designed to help people
find more high-quality sites in search. Since then we’ve gotten a lot of positive responses about the change: searchers are finding better results, and many great publishers are getting more traffic. Continue reading “Google’s Panda Update Goes Global” »