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Organic CTRs vs Paid CTRs for Search 2014 Augustine Fou
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Organic CTRs vs Paid CTRs for Search 2014 Augustine Fou

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Organic search results get 90 - 94% of the clicks. And furthermore organic search results get 10 - 20X the click through rate compared to search ads. Where should you be spending your ad dollars?

Organic search results get 90 - 94% of the clicks. And furthermore organic search results get 10 - 20X the click through rate compared to search ads. Where should you be spending your ad dollars?

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  • 1. Augustine Fou- 1 - Dr. Augustine Fou http://linkd.in/augustinefou June 2014 Organic vs Paid Search CTRs
  • 2. Augustine Fou- 2 - Author’s Commentary Most of the clicks occur on the natural search results (90-94%) AND the highest click through rates are on the top 1 – 3 results (30- 78%). This speaks to advertisers spending more time and money on content creation and search engine optimization, rather than paid search ads to drive highly efficient ‘inbound’.” -- Dr Augustine Fou
  • 3. Augustine Fou- 3 - 94% of clicks go to natural search results 6% of clicks go to paid search results Share of Clicks Source: Search Engine Watch, August 2012
  • 4. Augustine Fou- 4 - Organic CTRs by position on page 1 of results CTRs by Page 1 Position Medical Device Company Source: Google Webmaster Tools 2014
  • 5. Augustine Fou- 5 - Organic CTRs by position on page 1 of results CTRs by Page 1 Position High Tech Company Source: Google Webmaster Tools 2014
  • 6. Augustine Fou- 6 - Organic CTRs by position on page 1 of results CTRs by Page 1 Position Celebrity Site Source: Google Webmaster Tools 2014
  • 7. Augustine Fou- 7 - Traffic Share by Position Source: Chitika June 2013
  • 8. Augustine Fou- 8 - Natural CTR by Industry Source: Search Engine Watch, August 2012 Airlines 78% 11% 4% Broadcast 64% 9% 9% Financial 64% 12% 5% Online Games 61% 12% 8% Auto Manuf 60% 19% 6% Apparel/Beauty 58% 11% 4% Cellular 56% 15% 7% Government 55% 15% 10% Mass Merch 55% 8% 7% Corporate 53% 12% 8% Hardware 51% 17% 8% Current Events 50% 10% 8% Food/Cooking 46% 17% 9% Software 44% 20% 8% Home/Garden 42% 9% 9% Consumer Electr 39% 9% 8% Top 3 organic results
  • 9. Augustine Fou- 9 - Search Benchmarks Paid/ SEM Organic $0.51 FREE Shift budget to organic to get more clicks at lower cost For long tail, descriptive keywords For brand terms and expensive keywords CPC 4.8% 13 - 78%CTR Source: SlingShot SEO 6 - 10% 90 - 94%share of clicks 1-2 words 5.1% 3-4 words 5.6% 5-6 words $0.54 $0.60
  • 10. Augustine Fou- 10 - Search Click Share vs Budget Source: SEMPO Clicks from organic search (SEO) account for 90% of all clicks; yet budgets for SEO only account for 10% of the search spending. SEO 89.5% PPC 10.5% Distribution of Search Clicks SEO 10.8% $1.4B PPC 88.8% $11.9B Distribution of Marketing Spend
  • 11. Augustine Fou- 11 - Dr. Augustine Fou – Digital Consigliere “I advise clients on optimizing advertising across all channels. One main area of focus is reducing the dependence on paid ads (both search and display); this example shows the great CTRs of organic results (content).” 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 @acfou ClickZ Articles: http://bit.ly/augustine-fou-clickz Slideshares: http://bit.ly/augustine-fou-slideshares LinkedIn: http://linkd.in/augustinefou
  • 12. Augustine Fou- 12 - Related Articles http://www.slideshare.net/augustinefou/effectiveness-of- digital-ads-by-augustine-fou http://www.slideshare.net/augustinefou/search-ad-fraud- 101-by-augustine-fou-technical-forensics http://www.slideshare.net/augustinefou/search-and- display-work-better-together-augustine-fou-2014 http://www.slideshare.net/augustinefou/digital- advertising-benchmarks-2014-by-augustine-fou Augustine Fou- 12 -
  • 13. Augustine Fou- 13 - APPENDIX
  • 14. Augustine Fou- 14 - Share of clicks for organic vs paid Click through rates for organic vs paid search Organic vs Paid 75-90% of clicks 13-21% avg CTRs 10-25% of clicks 1-9% avg CTRs Most users click on natural search results Natural results have 10x the click through rate of paid ads Source: go-Digital Blog, July 2012