SEO Vs PPC - Real stats and figures!

[darren atkinson]

Hi all,

Seeing that my previous blog post seemed to go down well here, I would like to bring to your attention my latest article:

SEO is 1433% more cost effective than PPC!
http://www.darrenatkinson.co.uk/blog/seo-is-1433-more-cost-effective-than-ppc/

The post contains real client data from the last 6 months, and should be an interesting read.

Kind regards

Darren

[An Oasis]

Yep organic is good if your site is in there. As a well know IT person says "nothing beats a good rank". ;)

Nice to see some independent figures, thanks for sharing.

[inova]

I'm sorry if I ask this stupid question but what is the difference between SEO and PPC

I know that SEO is some kind of online marketing but PPc is also the same, then what distinguish them?

[Aspect Investments]

PPC = Pay Per Click (Adwords etc)

SEO = Search Engine Optimization (organic search results)

[Words of Magic]

Search Engine Optimisation

The term used to describe the marketing technique of preparing a website to enhance its chances of being ranked in the top results of a search engine once a relevant search is undertaken. A number of factors are important when optimising a website, including the content and structure of the website's copy and page layout, the HTML meta-tags and the submission process.

Pay Per Click Advertising

Pay per click advertising offers a couple of distinct advantages over traditional marketing methods. First of all, due to the nature of pay per click advertising, you can be sure that everyone who ends up on your website due to your ads is actually very interested in your product or service.
That's because the ads are targeted to the search queries they have just entered and are therefore directly relevant to the product or service they are looking for. If a customer reaches your website from one of your pay per click advertising links, you can be sure that he or she actively sought out your site and didn't come upon it by accident. As a result, you'll get more customers who are ready to buy.

A second advantage of pay per click advertising is that it's a very cost-effective way of driving traffic to your website. In fact, most pay per click advertising programs allow you to have complete control over your costs by specifying how much you are willing to spend on each person that clicks all the way through to your site.

Wishing you all the success in the world,

[blown away]

Organic seems to be working for me, especially since submitting to google and google base shop connector, 2 weeks ago, we were nowhere to be seen, especially on google, I have been having a look today and for quite a few products either the ebay shop or the website, we are at the top.
At the top on yahoo uk too.I am hoping thatonce we get google checkout, we will get even higher rankings for a lot more products.

[sirearl]

Hi all,

Seeing that my previous blog post seemed to go down well here, I would like to bring to your attention my latest article:

SEO is 1433% more cost effective than PPC!
http://www.darrenatkinson.co.uk/blog/seo-is-1433-more-cost-effective-than-ppc/

The post contains real client data from the last 6 months, and should be an interesting read.

Kind regards

Darren

Great stuff Darren intresting read stats that most of us don't bother keeping :)

I have never used PPC so I would go further and say that SEO is infinitly more cost effective than PPC for us.

There is also the added benifit that the public is becoming more aware that PPC is a paid adds, and does not always return the search results they are looking for.

Hence it has been estimated that they will give preference to organic results on a ratio of 10 to 1 in favour of organic :cool:

[PeteYoung]

Out of interest Darren, is this on a like for like basis - ie same terms similar positioning etc.

I have found that like you have said SEO as a whole is far more cost effective in the long run than PPC - however I would suggest that the 1433% is far smaller once you take out brand terms and the like (from the SEO figures) which would in most instances convert at a higher rate (and are often forgotten on paid search activity), anc compare the stats like for like

Just a question, before I give a full pat on the back

[Coding Monkey]

The interesting part is that some research published a while ago found that the average PPC campaign converted at a higher rate than SEO.

[sirearl]

The interesting part is that some research published a while ago found that the average PPC campaign converted at a higher rate than SEO.

I would like to read that article,call me a suspicious old git but I wonder if it was instigated by a Google cronie :rolleyes:

[SteveGibson]

The interesting part is that some research published a while ago found that the average PPC campaign converted at a higher rate than SEO.

It wouldn't surprise me if the average PPC visitor spent more than the average organic visitor - if, as Pete said, you took out terms with the company name.

Perhaps the true message from Darren's example is that, if you're not a professional marketer, you should be bringing one in to manage your PPC?

Steve

[Aspect Investments]

The reason why PPC converts at a higher rate than organic, is companies that use PPC tend to pay more attention to the design and layout of the site in order for those clickers to convert to sales.

The organic webmaster does not pay as much attention to detail as he is not paying for his clicks.

Another reason is PPC usually sends the visitor to the conversion page, and organic results will usually send the visitor to the homepage.

[PeteYoung]

Not sure I agree with the EBA. From the perspective that with PPC, the flow of traffic and control thereof is more controllable - yes I would agree with what you have said - and if thats what you are trying to say then I would agree with your first point.

As far as your second is concerned, I have to disagree in the most part.

[SteveGibson]

The reason why PPC converts at a higher rate than organic, is companies that use PPC tend to pay more attention to the design and layout of the site in order for those clickers to convert to sales.

There could be some truth in that.

Also, the way some people do SEO, it "ruins" the sales message.

The process of using keywords, having them in the right place, theming the page so it's clear to the google algo etc, greatly restricts what the page says and how it says it.

(even when the on-page SEO is done 'seamlessly')

And that means a lower website conversion rate.

Having said all this, I think this is a side issue and there are more important factors than cause PPC traffic to have a higher conversion rate.

Steve

[Aspect Investments]

Steve, when you do a PPC campaign for a customer do you work with their webmaster to get the site conversion friendly? Or do you just concentrate on getting targeted traffic as cost effectively as possible?

[SteveGibson]

Steve, when you do a PPC campaign for a customer do you work with their webmaster to get the site conversion friendly? Or do you just concentrate on getting targeted traffic as cost effectively as possible?

EBA

There's no point getting people to a site if it's just going to squander that traffic.

As I said in my newsletter this month:

“Trying to increase sales simply by driving more traffic to a website with a poor customer conversion rate is like trying to keep a leaky bucket full by adding more water instead of plugging the holes.”

(this was quoted from a book called "Call to Action", not my own words)

I know that some PPC people regard their job as done once the ad is clicked on but, as a marketer, I see PPC as a multi-step marketing process .. and that each piece needs to work - and dovetail together - to get results.

So, with any new client, I have a good look at the site and will ask the client how well the site turns visitors into sales.

When necessary (for example the PPC campaign I'm working on this morning), I will re-write some of the copy on the site.

If the client isn't willing to do the work to have the site re-written or rearranged ... or if the client has had a load of SEO done and isn't willing to change anything ... then it's not a good fit with the way I work and I suggest they find someone else to help them.

(or, better still, forget about PPC altogether)

Steve

[sirearl]

The reason why PPC converts at a higher rate than organic, is companies that use PPC tend to pay more attention to the design and layout of the site in order for those clickers to convert to sales.

The organic webmaster does not pay as much attention to detail as he is not paying for his clicks.

Another reason is PPC usually sends the visitor to the conversion page, and organic results will usually send the visitor to the homepage.

I would agree with most of what you have said as a general rule,but a good SEO will make sure clients are sent to the conversion page

Also telephone sales generated by the website are very much dependant on the quality of the salesperson dealing with the client I think :|

[Words of Magic]

Too many pay per click companies and individuals soley focus on buying traffic and sending this traffic to a website,thinking thats all it takes. But the website is part of the adwords process. This is a grey area with pay per click companies.Its important to have a tight match between keyword and ad,then tight match between ad and landing page.

Whatever your most wanted response is on a website the most significant factors are your clickthrough rate to drive your costs down and the conversion rate on the website.If the website does not reinforce the message from the ad and engage the prospect,its a super fast way of burning a big hole in your credit card.

Wishing you all the success in the world,

[JamieM]

There is also the added benifit that the public is becoming more aware that PPC is a paid adds, and does not always return the search results they are looking for.


I disagree. I think the public are becoming more aware that paid ads are more targeted and more likely to help them find what they are looking for.

At the end of the day I think the figures only apply to John's business and are not necessarily a reflection of 'the norm' for online marketing. A major factor is that the quality of John's PPC campaign has not been taken in to consideration. The article is good and serves to illustrate the importance of monitoring and testing your online marketing.

My personal feeling is that as long as PPC is profitable, keep doing it and work to increase the profitability going forward.

[sirearl]

I disagree. I think the public are becoming more aware that paid ads are more targeted and more likely to help them find what they are looking for.

At the end of the day I think the figures only apply to John's business and are not necessarily a reflection of 'the norm' for online marketing. A major factor is that the quality of John's PPC campaign has not been taken in to consideration. The article is good and serves to illustrate the importance of monitoring and testing your online marketing.

My personal feeling is that as long as PPC is profitable, keep doing it and work to increase the profitability going forward.

I have no problems with the use of PPC if a company can use it to make a profit or has not the SEO skills to get organic listing but the fact remains PPC is lttered with sites that have very little relationship to the term the seach engine user wanted.

Allied to that there is this small problem.

http://www.weboptimiser.com/search_engine_marketing_news/15018417.html

and this piece which compares PPC with organic search results

http://www.affordable-seo.co.uk/articles/ppc-vs-seo.html

One of the benifits of a high organic listing is that the public actualy percieve it as an endorsement from the search engines for that site,which of course it is not :cool: :cool: :cool:

[inova]

I was offered a couple of weeks ago a website called adbrite
they pay people to click on the certain ad...which makes me think whether PPC is effective or not due to these kinds of websites.

[Alexander-Adwords-SEO]

inova I would stick to Adwords, Yahoo & MSN until you have those mastered. I used adwords to earn money with Amazon's affiliate program. The commission is from 5 to 10%. If I can make money when I only make that in commission then I'd say it was very effective.

[Michael_Anthony]

This is a big question, but to me the answer's simple.

First, you need a site. Then you need traffic.

Quickest route to traffic = PPC.

You need to try maybe thousands keywords to really get to the bottom of which terms convert.

You need to use A/B split testing of both landing page design and ad wordings.

Then you need to prune that keyword list down to the ones that convert best at the lowest cost.

Then, and only then, do you have your "golden nugget" keywords - they are the ones that provide the highest ROI. Then, and only then, are you ready to start your SEO. Low PPC cost = low competition = less SEO competition. Those are what you need to rank for.

Why? Because you don't want to rank for generic terms like "widget" where there are 20 million natural SERPS results and most people are still searching and in the research phase of their buying cycle. You want to rank for "blue chrome widgets" as that's the product that you specialise in/gives you the highest margin and there are only 5 million results for that. AND, most crucially, your PPC campaign has proven that people clicking on "blue chrome widgets" are going to convert into customers.

It's about conversions, not traffic. Simples.

[sirearl]

This is a big question, but to me the answer's simple.

First, you need a site. Then you need traffic.

Quickest route to traffic = PPC.

You need to try maybe thousands keywords to really get to the bottom of which terms convert.

You need to use A/B split testing of both landing page design and ad wordings.

Then you need to prune that keyword list down to the ones that convert best at the lowest cost.

Then, and only then, do you have your "golden nugget" keywords - they are the ones that provide the highest ROI. Then, and only then, are you ready to start your SEO. Low PPC cost = low competition = less SEO competition. Those are what you need to rank for.

Why? Because you don't want to rank for generic terms like "widget" where there are 20 million natural SERPS results and most people are still searching and in the research phase of their buying cycle. You want to rank for "blue chrome widgets" as that's the product that you specialise in/gives you the highest margin and there are only 5 million results for that. AND, most crucially, your PPC campaign has proven that people clicking on "blue chrome widgets" are going to convert into customers.

It's about conversions, not traffic. Simples.

Its a 2 year old thread but never mind.

Its about traffic as always.

conversion can easily be fixed traffic can't.

Even more simples.

Pay attention at the back there please.;)

Earl

[Openeye]

SEO is 1433% more cost effective than PPC!
http://www.darrenatkinson.co.uk/blog/seo-is-1433-more-cost-effective-than-ppc/



Yep good example and im an advocate for and make my living via both PPC & SEO but each case/client budget/SEO project & costings is different and I and lots of other people could show stats that PPC is far more cost effective than PPC. I REPEAT I am an advocate of and practise SEO professionally but sometimes the advantages of PPC in some cases make it the more profitable option:



Can tailor sales message instantly e.g. winter sale 70% discount
Can immediately take advantage of new sales tends e.g. "2010 diary"
Can test effectiveness of landing pages quickly
Can ensure spend only goes on the most effective variables i.e. run campaign certain hours, days, opportunities.
Can appear for hundreds & thousands of phrases. This is costly SEO wise as a page can only generate a finite amoint of page 1 listings.
Any PPC work has immediate results

A real world example:

Client X appears page 1 on all major engines for the biggest and most profitable keywords. SEO Cost to achieve that £1500 one off, £200pm ongoing. Cost per sale via organic sales year 1 £9. Cost per sale PPC every day £3. The SEO effort will therefore in several years be more cost effective but if they had to do without the PPC sales the company would not exist right now, nor could they afford the SEO work!