Why you need PPC AND SEO recent study

Came across an interesting study which says that PPC and SEO go hand and hand.  Here at ITP we preach a balanced approach to SEO.  We suggest that what works in one industry or for one company may not work for another.  PPC is a stop gap while on page SEO is building for some, for others its a money maker everyday no matter what they do on page.

This paper is interesting because it suggests that having BOTH PPC and organic listings create a stronger response.  This verifies some of the concepts we preach of balance and holistic approach.  Read the entire study or here are some of the highlights.  Keep in mind this is just one study but it isn’t interesting information.  If you are doing only PPC give us a call or if your only showing up naturally assuming you don’t need any PPC lets talk about that too.

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1491315

- On average, the impact of organic listings on paid advertising is 3.5 times stronger than vice-versa, possibly because of the tendency of consumers to trust organic listings more than paid ads.

- The positive association between paid and organic listings increases advertisers’ profits by at least 6.15% when compared to profits in the absence of either of them. The positive association is strongest when advertiser-specific keywords are used and weakest when brand-specific and generic keywords are used.

- Click-through rates, conversion rates and total revenues are higher when both paid and organic listings are present simultaneously than when paid search ads are absent.

- The combined click-through rates are 5.1% higher when paid and organic listings are present simultaneously than when only the organic listings are present.

- The combined conversion rate increases 11.7% when paid and organic listings are present simultaneously than when organic listings alone are present.

- Paid search advertising drives up to 54% of total revenue growth.