A recent study from 2 SEM experts, professors at NYU Stern, revealed that organic search results play a direct role in a paid listing getting clicked. The study showed that if your business has a paid result and an organic result appear simultaneously, your business has a better chance of your paid result getting clicked than if the organic result had not shown up.
Professors Anindya Ghose and Sha Yang have pointed out the following findings from their 52 page long research paper entitled “Analyzing the Relationship between Organic and Sponsored Search Advertising: Positive, Negative or Zero Interdependence?“:
- On average, the impact of organic SEO NJ listings on paid search engine marketing is 3.5x stronger than vice-versa, because consumers trust organic SEO NJ listings more than paid search engine marketing ads.
- The positive association between paid search engine marketing and organic SEO NJ listings increases advertisers’ profits by 6.15% when compared to profits with just paid listings or organic listings alone. The positive association is strongest when advertiser-specific keywords are used; it is the weakest when brand-specific and generic keywords are used.
- CTRs, online conversions rates, and total revenues are higher when both paid search engine marketing and organic SEO NJ listings are present simultaneously rather than when paid search engine marketing ads are absent.
- The combined CTRs are 5.1% higher when paid search engine marketing and organic SEO NJ listings are present simultaneously rather than when only the organic SEO NJ listings are present.
- The combined traffic conversion rate goes up by 11.7% when paid search engine marketing and organic SEO NJ listings are present simultaneously rather than when organic SEO NJ listings appear alone.
- Paid search engine marketing drives up 54% of total revenue growth.
Search Engine Marketing
December 4, 2009