PPC cannabalizing organic results
An interesting study from SEMphonic brings a neglected idea in search to light: does buying PPC ads on a word cannibalize your organic search clickthroughs?
It seems the answer is a resounding Yes!
The relationship between organic and PPC programs in building SEM programs has been given short shrift in the industry. Most SEM practitioners have opted into the view that they don’t need to account for organic listing position when making PPC buys – either because there is no relationship between the two or the relationship is one of simple, positive reinforcement. This belief – which is, on its face, rather unlikely – is eagerly supported by many in the industry with a strong self-interested motive in perpetuating an attitude conducive to maximum spending.
A study done with a Fortune 1000 client showed conclusively that the company’s organic traffic was being significantly cannibalized by their paid program.
In fact, we found cases where half or even more of the paid traffic would likely have arrived from organic listings if the paid ads were not present. That means that the true cost of many of the keywords being purchased was far higher than the buyer realized.
