Organic Search Boosts Your Paid Ads

NYU Stern School of Business recently saw an interesting study about organic search and its impact on paid result. The conclusions that came from this study really revealed quite a lot about using a complete search engine optimization and internet marketing program, as opposed to just picking and choosing certain aspects. Basically, when it comes to your online marketing it is an all or nothing game- anything less that total across the board efforts just will not be worth your time and energy. The study, called Analyzing the Relationship between Organic and Sponsored Search Advertising: Positive, Negative or Zero Interdependence? has raised quite a number of questions from what I am seeing about the whispered rumors that Search engines favor those who use paid- but there is still yet no proof of this, and most who have argued against this have agreed that is a pretty flimsy basis for the argument. However, it still remains- give it your all in online marketing, or you may not get all you deserve.

“In this paper, we model and estimate the inter-relationship between organic search listings and paid search advertisements using a unique panel dataset based on aggregate consumer response to several hundred keywords over three months collected from a major nationwide retailer store chain that advertises on Google.” The introduction states. On the whole, this is really an interesting study and if you have a minute, or, enough minutes to read through the fifty two pages of it- do. It’s definitely an enlightening look at why you have to have a fuller, more broad stroke SEM plan and implement it well.

Professors Anindya Ghose and Sha Yang found that firstly, utilizing paid ads drove up to fifty four percent of overall revenue growth, so, there’s one point for paid. But moving on in the study, the combined conversion rate was 11.5 percent when using both, and because potential customers and clients trust organic results more than paid, the impact of organic search results on paid ads was greater than the opposite. Meaning, working on your organic links, your SEM, this is important to making your target audience feel that you are a trustworthy sort of business. In fact, the association with both paid and organic increased advertisers profits by at the least, 6.15%. It was also pointed out the importance of advertiser specific keywords used as opposed to general.

While this does not really offer any concrete foundation for the speculation about paid ads giving you favor with the search engines in my eyes, what it does reinforce is the old adage is just as true as ever: reputation counts. And, if your site is relevant enough to make it in the SERPS, then your paid ad looks pretty good. It doesn’t seem like you had to buy your way into a good reputation and customers like that.