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Google: Ad Clicks More Valuable Than Organic Clicks

May 25, 2010Domaining, Domainnamewire, google economic report, UncategorizedComments Off on Google: Ad Clicks More Valuable Than Organic Clicks

Good news for publisher from Google economic report.

Google has released an economic study showing its impact across the United States.

Here’s one of the more interesting tidbits for publishers and domain owners: Google assumes that a click on an Adwords ad results in more revenue to the site owner than a click on an organic ad:

However, clicks through search results may not be as commercially valuable as ad clicks, so we want to be conservative: we estimate that search clicks are about 70 percent as valuable as ad clicks.

At first this may seem counter-intuitive. Don’t people trust organic results more? I think there are four reasons and ad click will outperform an organic click:

1. Once you click on an ad, you have identified yourself as someone with specific intent. You’re not turned off by the ad, and you click it with the intent to complete an action.

2. Ads are more targeted. When you search for a specific product, an ad is to-the-point and delivers you to a landing page specific to that product. Often times an organic result includes superfluous information and leads you to an un-targeted page.

3. Less competition. There are fewer ads than organic results. If someone decides to “shop” through the ads, there’s less clutter.

4. They’re commercially oriented. Advertisers don’t pay for ads that don’t deliver value. A lot of organic listings lead to topical content rather than a commercial page.

© 2010.

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Related posts:

  1. Update: Google Organic Search Results Requirement
  2. Using Google Webmaster Tools New Organic Search Data
  3. Do shorter ads get more clicks?