PPC Tuesday – Can I Afford to Stop PPC

By Kevin


When I speak with potential clients there is often a moment when the question is asked, do I need to PPC in my marketing plan?

This is often asked out of the constant frustration with the always evolving landscape that is AdWords. Owners often feel that they can eliminate the hassle and spend of paid search and maintain traffic levels and sales through their organic traffic.

As I am sure you can guess, my obvious answer to “do I need PPC?” is yes. But my reasoning may surprise you.

Google has recently released a study that they had performed between the months of October 2010 and March 2011. The study focused on 446 advertisers who were running AdWords ads for their businesses.

What the study looked to gain insight on – was if an advertiser stopped PPC would organic results increase and make up for the loss site visits brought in as a result of PPC traffic? So Google looked as the 400 plus sites and observed their organic click volume with their PPC campaigns paused.

Google’s statisticians created a formula that enabled them to predict the click volume for given levels of ad spend. It essentially looked to determine the percentage of paid clicks that are not made up for by organic clicks when paid search ads are paused by the advertisers.

The results were consistent across multiple verticals. The number was an astounding 89%. This means that 89% of the traffic generated by PPC is NOT replaced by organic clicks when ads are paused.

The full details of the study can be found here at http://research.google.com/

When one sees the results of the study reaching close to a 90% loss of PPC generated traffic if an advertiser were to stop – it can be jaw-dropping.

So the next question is, ok I get it. I need to keep my presence in paid search but how do I run my PPC campaigns in a way that will truly benefit my business as well as generate profitable results?

The answer is not an easy one. There are many ways that people utilize PPC for their business. Exclusive Concept’s approach is to target the product categories that allow you the margins to compete effectively with the competitive nature of paid search.

Even then it’s not that simple, it also comes down spending the appropriate amount of time creating a well structured account that allows you to manage and optimize your account on a regular basis. It truly becomes a labor of love to manage your account effectively.

We strive to take the time with all of our Profitable PPC clients to craft an account that will take all of the above into account and regularly meet with our clients to adapt to their business as it changes with the consumer needs.