Click through rates: Searches using terms that denote high purchase intent such as product or brand-specific keywords will get more clicks than organic results. The advantage of paid search can clearly be seen in the Internet retailers MarketLive Performance Index data. For the year 2013 as a whole, PPC accounted for 36.5% of search traffic but an outsized 47.9% of revenue from search.
One of the most enduring misconceptions about search engine marketing is that whomever has the largest advertising budget wins. Although a larger advertising budget can certainly be advantageous, especially when targeting highly competitive keywords, but it’s far from a requirement for success with search engine marketing. This is because all ads go through a process known as the ad auction before appearing alongside search results. For the purposes of this explanation, we’ll be focusing on the ad auction in Google AdWords.
You know who and where your best customers are — Bing Ads lets you choose when and how to reach them. Control where your ads appear by city, state, country and worldwide. Fine-tune your targeting even further by setting the time of day to display your ads and on which devices. By targeting only your most relevant customers, you can reduce unnecessary spending.
When a search engine user in the targeted area searches for the keywords or keyphrases that you chose, your ad enters an immediate online auction. Your ad is displayed when it matches bid and relevancy criteria, so you want to make sure that you have an appropriate budget size, and that you are bidding on keyphrases relevant to your products/services (such as those indicated on your website or landing page). You are not charged when your ad is displayed, but rather when someone clicks on your ad to take further action.
There are also a few more similarities. All of these marketing methods are measurable to an extent never seen in any other media. Every click can be measured – where and when it came – and followed through to the conversion, the sale and the lifetime customer value. This feedback loop creates optimization opportunities that can create huge incremental improvements in your SEM campaigns.
Although it may have changed slightly since BrightEdge published its report last year, the data still seem to hold true. Organic is simply better for delivering relevant traffic. The only channel that performs better in some capacities is paid search ads, but that is only for conversions, not overall traffic delivery (Paid Search only accounted for 10 percent of overall total traffic).