SEO vs Ads

[ncmaggie]

This may be a topic frequently addressed on this site or a completely outdated issue. I currently use Google AdWords for my company and have been happy with the results. I have search terms that are not very expensive and we are getting conversions that make using adwords worth our time. We are currently looking at doing search engine optimization. The company we are working with gave us some statistics that seemed to make a lot of sense. I have seen varying numbers in terms of what can be expected from PPC and SEO. Does anyone have a very simple way to explain the numbers eg. if there are 1,000 searches you are likely to get x number of PPC and x number of clicks if in the top x of the search term...
Thanks!

[seobook]

it depends on the positioning of the placements.

I believe recently someone stated Google's AdWords CTR was something along the lines of 17%
http://battellemedia.com/archives/001102.php

also at the 2003 NYC SES I believe that JupiterResearch stated that 5 in 6 sales which originated from search came from free or organic listings.

from market segment to market segment the numbers can probably vary quite a large amount though

[Robert_Charlton]

At SES San Jose a couple of years ago there was a presentation by Greg Jarboe in which he talked about a symbiotic effect between top organic and paid listings. He said the following....

- When clients achieve top rankings for both organic and paid listings, they get a 3X boost in click through rates

- Searchers who see a site in both top organic and top paid positions are three times more likely to click through to that site

- It’s like they’ve received a favorable "second opinion" from the second listing which reinforces the site's relevance for their search

This suggests that good organic results can help you maintain good AdWords positioning for less cost on Google, since the increased click-through rate would lower your cost per click.

...if there are 1,000 searches you are likely to get x number of PPC and x number of clicks if in the top x of the search term...

I'd love to see the figures too, or even a comparison between how much more likely it is that an organic result will be clicked (if that's true) than a paid result. I'm sure it's term-dependent, by the way.

[AussieWebmaster]

I think the numbers are lower for organic than what I have read in reports... but that may just the areas I deal in...
I have had top 2 PPC and top organic and have found the top PPC gets more traffic followed by #1 organic and then #2 PPC... the organic converted a little better (say 17% compared to 14%)

[ncmaggie]

Interesting.... the information is somewhat confusing. So what is the typical conversion rate for click throughs? I was told 1-2% by SEO companies and that typically organic click throughs are higher 2-4%. Do you all think that is accurate?

[AussieWebmaster]

Interesting.... the information is somewhat confusing. So what is the typical conversion rate for click throughs? I was told 1-2% by SEO companies and that typically organic click throughs are higher 2-4%. Do you all think that is accurate?
I am getting far better than 2-4% for PPC and organic traffic conversion. We do however use a sign up for a free demo account as our measureable (but it does require email address, name and other information) and if the 15% conversion to a real account (which we get once they have tried the demo) was the measure then both numbers would be in that 2-4% range.

Organic does convert just a little better in most cases. But there are a few terms combined with solid tested creatives that prove better than the organic - you have the ability to choose the landing page which in many cases does not get to the top for organic results.

[howell]

Does anyone know of any 3rd party studies about Oraganic vs PPC results? Not ones written by SEO companies? I believe that SEO firms will tell you organic listings get more traffic since they are trying to sell you their services.

I know that every industry is different but having a 3rd non-biased parties statistics would be very helpful

[AussieWebmaster]

Does anyone know of any 3rd party studies about Oraganic vs PPC results? Not ones written by SEO companies? I believe that SEO firms will tell you organic listings get more traffic since they are trying to sell you their services.

I know that every industry is different but having a 3rd non-biased parties statistics would be very helpful
Might make a good project for the newly formed SMA.

[cline]

I do both PPC and SEO. CTRs are all over the place. So much depends on what the other listings are and what it is you're selling. Any simple number is just a rough benchmark to be looked at and then largely forgotten. Focus on your situation, not the averages.

Very roughly, Adwords ads on average achieve a 2% CTR. CTRs vary tremendously as a funciton of keyword, offer, position, and creative.

I've read that CTRs on editorial listings are rougly 7x greater than ad listings. Entirely possible, but my own experience suggests a number more like 4x. So, yes, SEO for any given term will probably get you more traffic for that term than PPC. However, PPC will get you listed on far more terms than SEO will. It should not be considered an either/or.

Of course, not all clicks are created equal. My opinion is that enough folks have figured out that the ad links are pretty good places to look if they're shopping and the editorial links are better if you're looking for information.

[seobook]

Performics is an affiliate network and search marketing firm but in 2004

their PPC Click Through Rate data across their network (as stated at SES New York):

* #1 ~ 3.5%
* #2 to #4 ~ 1.5%
* #5 on down ~ 0.75%