Independent Studies Confirm The Benefits Of Pay Per Click (PPC) Search Engine Marketing
A study conducted in January 2001 by NPD Group, a research firm specializing in consumer purchasing and behavior, tested the effectiveness of search listings, banner ads and tile ads across a variety of sites. As the graph to the right displays, the results indicated that consumers are over six times more likely to purchase products after seeing search listings versus banner or tile ads.
The study concluded that users are more likely to read a search listing versus a banner ad by an 8:1 ratio, and more likely to click on a search listing versus a banner ad by an astronomical 20:1 ratio. Additionally, sites displayed in search listings are considered more favorable than those in banner and tile ads, and search listings provide significantly greater levels of site awareness than banner and tile ads.
Jupiter Media Metrix, a leading research and analysis company, conducted two studies that demonstrated the effectiveness of PPC search engine marketing. Their "Online Advertising Effectiveness Study," conducted in August 2001, analyzed the performance of CPC banners, CPM banners, Opt-In Emails, Paid Inclusion Products and PPC Search. Another Jupiter study from July 2001, “Paid Search Engine Placement,” highlighted why the ppc model works. Here are some key findings from those reports:
Respondents say that they received the highest return on investment (ROI) from pay for placement search when compared to CPC banners, CPM banners, and opt-in e-mail campaigns.
Online advertisers have a significantly higher level of satisfaction with search listings than with any other online advertising method they have used or are currently using.
When consumers are looking for a product to buy online, 42% use a search engine.
Paid search placement succeeds because consumers find relevant advertiser listings, while advertisers only pay for qualified traffic coming to their site.
Paid search placement has proven to be one of the most successful online advertising models because it aligns consumer need with advertiser interest. This research confirms the power of paid search listings in driving bottom line results. Take advantage of the advertising vehicle that can put your business on top of the search results from almost every major portal, search engine, and internet browser.
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