Forum Moderators: open

Message Too Old, No Replies

Does Google Natural Listings result in better conversions

Since lost of original Google Listing - Conversion is poor

         

lgn1

9:28 pm on Oct 12, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Around the middle of September, my customer conversion rate took a nose dive. This is around the same time that my natural listing disappeared in google. Previously I have been in the top 10 for 5 years (except for a month post florida).

Well im waiting for my listing to reappear, I have been using overture and adwords to make up my traffic, for the targeted keywords that were lost.

I gained all my traffic back, by using more PPC, however my conversion is still down the tubes. The way I figure it, I was getting about 4% from Google natural search, and 0.4% for PPC advertising. I find this hard to believe, and maybe its just a coincidence that sales are down overall, and I would have seen this regarless of losing the google natural listings.

Anybody seen this effect?

dirty_marra

2:36 pm on Oct 13, 2004 (gmt 0)

10+ Year Member



Could this be due to the quality of the PPC ads?

are you targeting the same keywords?

are your ads targeted enough?

I'm sure you've questioned this but thought I'd ask.

Marra

glitterball

2:56 pm on Oct 13, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



I have to be honest, I have found that there is absolutely no comparison between the conversions from PPC and Natural Search results.

IMHO, the natural search results deliver much better traffic.
I setup one of my campaigns with an affiliate ID to figure out the conversion rate - with a 30 day cookie.
I am still waiting for a conversion 2 months later.

Time and again users are telling me that they ignore the 'sponsored results', I reckon that a good portion of the PPC click-throughs are from competitors and industry researchers.

HayMeadows

3:15 pm on Oct 13, 2004 (gmt 0)

10+ Year Member



Great question Ign1. It all depends on which "official" reports you trust. The ones sponsored by the search engines or the ones sponsored by SEO firms.

PPC usually costs more per click but converts a bit higher. The trick is you can only get so much business from PPC.

SEO is usually much less costly per click, does not convert as high, but can bring in a ton more traffic.

We've found you can get about 10 x's the amount of traffic through natural organic listings, and usually about 3 x's the amount of sales as PPC.

A well optimized marketing campaign uses both SEO & PPC.

[edited by: HayMeadows at 3:38 pm (utc) on Oct. 13, 2004]

lgn1

3:15 pm on Oct 13, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



The problem is that my YAHOO and MSN natural listings are performing poorer than Google.

Its almost like having a google listing adds credibility and boost's consummer confidence.

OptiRex

3:19 pm on Oct 13, 2004 (gmt 0)



Once again I find myself agreeing with glitterball however some of our competitors continue with the PPC therefore I assume that they must be able to jusitfy this expenditure...either that or they find it difficult to admit it's not cost-effective/profitable.

OptiRex

3:21 pm on Oct 13, 2004 (gmt 0)



HayMeadows

>A well optimized marketing campaign uses both with good tracking so that you can tell what works and what does not.

Are you referring to recognised branded consumer products?

HayMeadows

3:30 pm on Oct 13, 2004 (gmt 0)

10+ Year Member



Are you referring to recognised branded consumer products?

No. Brings up a good point, the site does need to be able to convert good quality traffic too.

nalin

4:02 pm on Oct 13, 2004 (gmt 0)

10+ Year Member



In our industry I have found the oppisite of the seeming consensus here:

We have done adwords and to a lessor extent overture, for ~2yrs.
For ~6 months we have enjoyed google ranking on similar terms to those we market on a ppc basis. Roughly our traffic to the site is ~250% of that which PPC only generated but sales (admittedly, a very rough gauge, but are market is not one that brings enough web orders to get solid conversion statistics) have increased only to about %150 of this time last year (comparing a period of about two months).

I would guess its highly industry dependant, we cater to a business crowd and I think they want to make purchases quickly without extensive reguard for price whereas a consumer might be more into SERP results because they are percieved as free and therefore the sites are percieved as less expensive vendors.

randle

4:09 pm on Oct 13, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member Top Contributors Of The Month



We do both; drive organic traffic and PPC. The conversion is about even, but for overall production the organic is far superior. We have found that you just can’t drive enough raw traffic through PPC to produce enough completed actions. Generally speaking conversion is a relatively low factor. I can’t speak for others but our entire world exists well below 10%.

You have to pay one way or the other. SEO costs money just like PPC. If you step back and really add up the man hours needed to get sites to the top, and maintain them, it’s not cheap for anyone, even a one man operation. However, the traffic gained from investment in SEO, for us anyway, is much higher. It’s just been a better place to invest in, especially if you’re in it for the long haul.

You need to do both for a variety of reasons. One area we really got caught with our pants down after Florida was in paid advertising. We just had not been doing enough of it and had all our campaigns on the back burner and not really up to speed. You can always turn your bids down but have all your campaigns as optimized as you can and be ready. Practice this aspect when it’s not a dire situation.

BroadProspect

4:29 pm on Oct 13, 2004 (gmt 0)

10+ Year Member



we found a 6:1 in favor of natural listing
/BP

mfishy

5:37 pm on Oct 13, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Probably due to rampant PPC fraud.

Powdork

6:19 pm on Oct 13, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Also depends on what you consider a conversion. On sites that rely on clickthroughs I find users that get to your site by clicking a sponsored result are more likely to click on a sponsored result while they are there too.

BillyS

7:49 pm on Oct 13, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



PPC usually costs more per click but converts a bit higher. The trick is you can only get so much business from PPC.

SEO is usually much less costly per click, does not convert as high, but can bring in a ton more traffic.

This has also been my experience. If you PPC is converting at only 0.4% you are not targeting correctly. I've had rates as high as 7% on PPC.

This feeds into a PPC discussion of maximum ROI versus maximum profits. You can get great ROI, but very little traffic - you need to find the right mix.

idoc

2:50 am on Oct 14, 2004 (gmt 0)

10+ Year Member



Another vote for natural is better. I also agree that probably ppc fraud is a bigger problem than most will admit. It is probably a bigger factor than Joe Surfer knowing he is clicking a paid ad... usually they don't know. Buying PPC ads IMO increases the scraping of your pages for use in the pseudo directories where the tracking links are systematically and programmatically clicked. The right keywords... usually *not* the expensive terms pay the best returns IMO. Though, I am out of the PPC having cancelled the accounts. The more expensive the word, the less conversion... the best value terms 2-3-4 words were an administrative nightmare to maintain.

Mr_Roberto

3:47 am on Oct 14, 2004 (gmt 0)

10+ Year Member



Agree with Idoc - PPC fraud is a major factor if you are in a competitive industry and are targeting the primary keywords.

Its truly amazing that Google's entire revenue model, click-based advertising, is built on a house of cards like this.

JenniferL

4:21 am on Oct 14, 2004 (gmt 0)

10+ Year Member



Very interesting topic, and quite frankly it never occured to me that there might be a conversion issue, until we received this feedback from a customer who found us with PPC(paraphrasing): "I was nervous about placing an order with this company from an advertisement"....so on and so forth. He basically went on to say that all went well despite his misgivings regarding him finding us through an ad instead of natural serps. I was quite surprised, since it had never occured to me before that consumers might not trust paid advertising in SE's.

BillyS

11:26 am on Oct 14, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Agree with Idoc - PPC fraud is a major factor if you are in a competitive industry and are targeting the primary keywords.
Its truly amazing that Google's entire revenue model, click-based advertising, is built on a house of cards like this.

If you are making a statement like this, then you don't realize the potential of PPC. It's quite easy to get a 50% ROI DAILY. It is just a lot of work and very competitive.

Very interesting topic, and quite frankly it never occurred to me that there might be a conversion issue, until we received this feedback from a customer who found us with PPC

One customer's reaction is just that - one opinion. My research shows that many people are willing to purchase through advertisements. In fact, they are probably higher quality than the SERP.

Here's another customers opinion: "I was surprised at the spam-filled sites I found in the natural results. When I look for a product, I only visit advertisers."