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Organic Search CTRs vs Paid Search CTRs by Augustine Fou

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organic vs paid ctrs, ctr benchmarking,

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Organic Search CTRs vs Paid Search CTRs by Augustine Fou

  1. 1. Organic Search CTRs vs Paid Search CTRs Dr. Augustine Fou March 2013-1- Augustine Fou
  2. 2. Users click on organic results Most users click on natural search results 10-25% of clicks Natural results 1-9% avg CTRs have 10x the click through rate of paid ads 75-90% of clicks 13-21% avg CTRs Source: go-Digital Blog, July 2012-2- Augustine Fou
  3. 3. Search – Paid vs Organic • 90% of users click on organic side • Cost per click on SEO is under • Less than 10% click on paid ads $0.10 per click • CPC on paid side is more than 7x higher, greater than $0.60 per click Feb 2009-3- Augustine Fou
  4. 4. Marketing Spend is Out of Whack Distribution of Search Clicks Distribution of Marketing Spend SEO PPC SEO PPC 89.5% 10.5% 10.8% 88.8% $1.4B $11.9B Clicks from organic search (SEO) account for 90% of all clicks; yet budgets for SEO only account for 10% of the search spending. Source: SEMPO-4- Augustine Fou
  5. 5. Optimizing Search Paid/ SEM Organic For long tail, For brand terms descriptive and expensive keywords keywords CTR 1 - 5% 13 - 21% CPC $1 - $10 FREE Source: SlingShot SEO Shift allocation to get more clicks at lower cost-5- Augustine Fou
  6. 6. So What? “As users get more savvy in their search and as advertisers get more savvy and focused on returns, search investment should shift from paid search to organic optimization, which also leads to longer term payoff.” - Dr. Augustine Fou-6- Augustine Fou
  7. 7. Dr. Augustine Fou – Chief Digital Strategist “I advise clients on benchmarking and then optimizing their digital marketing activities, with a focus on search optimization.” FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM) MCKINSEY CONSULTANT CLIENT SIDE / AGENCY SIDE EXPERIENCE PROFESSOR AND COLUMNIST ENTREPRENEUR / SMALL BUSINESS OWNER PHD MATERIALS SCIENCE (MIT 95) AT AGE 23 ClickZ Articles: Slideshares: LinkedIn: Augustine Fou
  8. 8. APPENDIX-8- Augustine Fou
  9. 9. Advertisers still overspendon paid search ads 89% of ad dollars spent on paid 89% of clicks come from search SEO/organic search Source: Feb 2010-9- Augustine Fou
  10. 10. Focus on longer search terms • Users are searching longer terms • Users click more on ads related to longer terms Source: Chitika, June 2010 Source: Chitika, Jan 2012- 10 - Augustine Fou
  11. 11. Users are very savvy The more specific the search (longer query length, in # of words) the higher the click through rate (CTR) on first search result. Source: Just Search, May 2010- 11 - Augustine Fou