• jeffbullas

    I agree there is very little information on the dynamics between paid vs organic.. keep up the great work
    Cheers Jeff Bullas

  • kennyppc

    another reason to pay for branded traffic in PPC ads could be if your brand name is generic enough (eg, contains a word that is high volume in your industry) that other advertisers who are phrase/broad matching on general industry terms show up for queries on your brand terms without specifically intending to bid on your brand. in that case, you could assume that you won’t lose any traffic to those advertisers even if you only have an organic listing, but i have seen that not to be true. taking up more real estate with a #1 ppc ad too gives you a better shot of not losing that traffic, and the assumption that the user will always choose rightly with your organic link is a really poor one. so sometimes paying for brand terms as a defensive mechanism can be important as well.

  • http://www.parallelpath.com tearles

    I recently attended a marketing conference and saw a Google speaker discuss another relationship between paid and organic results on branded search. Unfortunately, he didn’t provide the presentation to the attendees, but here’ s what I recall.

    Google performed some market research and showed two sets of search results to groups of people. I think the search had to do with GE, Siemens, and GE’s “ecomagination” campaign. In the first group, they did a branded search on GE and, of course, GE was the first organic result. Siemens showed up in paid position one. The second group used the same search phrase, GE still showed up at number one organically, but GE also had the number one paid position, right above Siemens.

    The two groups then were asked a series of questions, including who they thought was the market leader. Twenty percent more people said GE was the market leader in the group that saw GE’s first place paid ad than did in the other group. In other words, the paid ad provided significant brand-building value, without even requiring a click.

    Now, as to how to value that branding lift …

    Tracy Earles
    VP, Marketing and Bus. Dev.
    Parallel Path Corp. (http://www.parallelpath.com)

  • http://www.periscopix.co.uk Ben Gott

    Thanks David, its good to see someone suggesting a sensible methodology for testing this. As a paid search campaign manager It’s always tempting to argue the case for brand term PPC ads but I’d rather have an informed view.

    I thought it’s probably worth mentioning the effect of the brand terms on quality score also. We’ve seen cases where brand terms have given entire campaigns and accounts a boost in quality score leading to lower CPCs all-round.

  • http://www.decentreview.com/blog MarketingJamie

    Thank You David, you’re right. Keep posting some great post. I will surely talk about this on my blog. (http://www.decentreview.com/blog)