Google has released the results of a series of studies in which it is to make clear, using their own methods of statistical analysis, what is the value that the search advertising offers companies. The value, in terms of Google, is measured in terms of clicks and traffic, while the conversion of the user into a customer is a matter of course that falls under the responsibility of the company.
Google explains on the basis of studies conducted on 446 advertisers, between October 2010 and March 2011: “To understand the phenomenon, the team of statisticians at Google conducted a study of more than 400 advertisers. The researchers monitored the traffic of Web sites in the absence of advertising campaigns. Subsequently, they constructed a statistical model to predict the amount of clicks depending on the cost of advertising. From this it is derived that, on average, the percentage of traffic resulting from the incremental search advertising is 89%. This means that 89% of the traffic generated from search ads is not offset by organic clicks when the ads are paused”.
The objective of this research is to weigh the results of search advertising, net organic. The percentage of incremental clicks to the related advertisements is equal to about 90%, varying by country and by sector. Just as in retail statistics indicate an 87% average in the technology goes to 90% and in health is nearly 93%.
Company valuations are then woven on the basis of such evidence: the search advertising is able to double the traffic to your pages and is therefore able to double its market opportunities.
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