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Organic and Sponsored Links on Search Engines: Which Are More Likely to Convert? -

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Organic and Sponsored Links on Search Engines: Which Are More Likely to Convert?

posted Wed, Apr 07 2010

Part of my job is to look through various data from comScore and Nielsen on a regular basis, and over the last few months, I've noticed some interesting points about the value of organic and paid search links for consumer interaction.

What the figures show fairly consistently is that when we look at all website visits that originate from a search engine, those coming through paid search links (i.e. search ads) are more likely to convert than those coming from organic (algorithmic) search results.

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So this would seem to suggest that people coming to your website through search ads are more valuable than those coming through organic links. The reason why this might be true is to do with how people search, and it has some interesting implications for site owners.

First of all, we would expect that searches to do with entertainment, sports news and so on would be less likely to result in a purchase, and are more likely to use organic than paid links. In contrast, searchers looking for the best price for a particular pair of shoes, or a specific mp3 player, are more receptive to appropriate paid search links, perhaps with the model name or a specific price mentioned.

To get more insight, we then looked at search clicks within specific categories - so all searches in the travel sector, all those to do with retail and so on. Interestingly, the figures show that even within a particular category, clicks on paid search links were still more likely to convert than those on organic links.

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Broadly, we can see that this again relates to the kind of search that results in a click on each kind of link. Informational searches are more 'browsing'-led, looking for updates, the most recent breaking news and so on. In this context, a paid search ad can't necessarily offer a very compelling proposition - 'more accurate information', anyone?! When it comes to searches relating to purchase, however, it's more results-led. Paid links are much more relevant, and consumers are more receptive to them. In particular, if we think of people looking for the best price on a particular product, search ads by their nature can be more compelling, particularly those that have a specific price on them, and searchers are more likely to be swayed by what they offer.

What does this mean for you? Well, ultimately it goes back to the well-known point about what role search ads play. Organic links are preferred for gathering information, bringing people to your website and so on; but if you're looking for converting customers, you have to remember that searchers are more easily swayed by paid links when looking to buy, and so being present in the ad listings is an important part of your ideal search strategy.

(Nielsen data allows us to see what proportion of all search referrals result in a secure session on the destination site, and sites such as Amazon and banking websites illustrate that this is a pretty good indicator of transactions or conversions taking place on the site).

All figures are from NNR search data, October to December '09. UK data used in this post; French data reflect the same patterns.

Comments

  • Thu, Apr 08 2010 06:14AM
    Rahul Sutar

    What about the services on offer. which of the two search ads or organic links would bring in more leads/customers. I agree that paid ads are more likely to convert customers looking to buy products online. According to my experience, since paid ads are short and concise, sometimes just 4 to 5 in number, searchers choose sponsored links over natural listings. Also search ads are strategically positioned to the right side of the SERPs.  

  • Thu, Apr 08 2010 10:15AM

    most of my clients come through paid search. so it is an important part of the search strategy.

  • Thu, Apr 08 2010 11:09AM

    I am actually surprised by these results, I really thought that organic links would do better!

  • Thu, Apr 08 2010 03:12PM

    Also I think that needs to be taken into consideration is the fact that PPC advertisers are getting smarter when it comes to keywords as well as how to word the ad itself. It's going to take some time before I can agree that PPC is more important then SEO unless you are looking at DR only. PPC is DR driven no question about that.

  • Fri, Apr 09 2010 12:09PM

    We also think that sponsored clicks convert better than the organic ones for all markets we promote. Sponsored ads attract an older audience that is less experimented and want to buy now. The organic clicks are mostly from people who are into reading reviews about a product, comparison, coupons/discounts.. they are way more experimented but alot harder to convert in sales. Just my 2 cents!

  • Tue, Apr 13 2010 09:46PM
    Rana

    If we look at the space of users who understand the difference between paid search and algo search, It seems natural for paid search to have better conversions.

    Verticals like travel,electronics where the "know more" or "buy" is the intent, people get drawn to paid search results due to the description of the Ad. In an example like say "hitachi air-conditioner", most search engines can give compelling results on paid search and rather gives news items on algo search. Here the intent for the user is to "take a lead" or buy. Hence this outcome seems rather natural and you seem to have data to back that.

  • Thu, Apr 15 2010 09:31AM
    All-in

    I'd like to see this comparison done more apples-to-apples, rather than lumping all paid search together and all organic.  Do you really mean to leave us with the impression that, on a search results page where my site is #1 for organic and also has a paid ad, that seeing or clicking on the paid ad will make a visitor more likely to convert?  You used the term "swayed by" which implies that you think there's causality.  

    A site I work with spends $150K/month and its organic traffic converts far better than paid search.  There are clear reasons for this once you think through the underlying factors.

    I think this blog post is self-serving and naive.  Sorry.

  • Thu, Apr 15 2010 09:47AM

    Sorry you feel that way about the post - we do try to raise interesting points with the blogs, and obviously not everyone agrees all the time, but that makes the discussion more interesting! :)

    I think it's also worth pointing out that the data we have access to in this way only goes down to the level of particular product categories - it's not possible to look at the results for individual sites, some of which may vary. But the data still indicate that on average a click on a paid link is more likely to lead to conversion than a click on an organic link - and the reasons why this might be I think relate to how people search.

  • Thu, Apr 15 2010 10:05AM
    All-in

    Thanks for the quick reply to my rather blunt post.  I'm still wondering - On a search results page where my site is #1 for organic and also has a paid ad, that seeing or clicking on the paid ad will make a visitor more likely to convert?

    Or are you saying that paid ads have the advantage of having more control over the text - i.e. display a price in the ad or something else compelling, such as repeat the search text in the ad title or copy.  I think that's true, but it has to do with a capability that paid search has and organic search doesn't.

    Still, getting the organic blurbs to be as compelling as the paid blurbs is not difficult in many cases, certainly for the big head keywords, if somebody knows what they're doing in their organic site optimization practice.  Implying that the paid ad has something intrinsically able to "sway" people is, I'm claiming, a questionable interpretation of the data you are citing.

  • Mon, Apr 19 2010 02:22PM
    Anonymous

    This seems completely intuitive to me. One of the benefits of paid listings is that you can qualify your customer through targeted, thoughtful ad copy. All-in, have you ever considered that your paid ads convert at lower rate because you aren't doing a good job of qualifying your clickers?

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