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New Report on Search Marketing from Ad Age

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Ad Age just published a new report on search marketing.  Below are some of the stats that I found the most interesting, you can also read the complete search marketing report.

  1. People ignore PPC ads 88.5% of the time - the PPC ad click through rate is only 11.5% in total.  This means that SEO is a critical tactic for reaching the vast majority of people who ignore ads.
  2. Marketers are shifting budget from outbound marketing to inbound marketing - 20% are shifting budget from print advertising and 16% from direct mail to search marketing.
  3. 31% of searches contain 4 or more words - about 1/3 of searches are for long and unique phrases. 
  4. 65% of marketers who do PPC ads manage less than 500 keywords in their campaigns - most companies have a relatively small set of keywords that apply to their business.
  5. There were 9.82 billion searches in the US in August 2007.  There are over 3,500 searches in the US per second.
  6. Google hired 5,000 people in 2006, doubling their workforce, and on average Google generates $950,000 in revenue for each employee it has.
SEO kit

Posted by Mike Volpe on Wed, Jan 09, 2008 @ 02:42 PM

COMMENTS

Very interesting article. Lots of useful information and insights.
Personally, I still think Pay-Per-Click is a very important component of successful marketing on the Internet. The key is knowing what search words one should use, how broad/narrow one's search words should be, and how much one should pay per click.

posted on Thursday, January 10, 2008 at 5:00 AM by Kelvin Kong

88.5% ignore rate is actually lower than I thought ;) Still, organic (natural) inbound marketing is best.

posted on Thursday, January 10, 2008 at 10:06 AM by Yoav Shapira

Wow... I thought I was knowledgeable about this stuff.... in fact, people pay me to be in the know. I just found my new favourite resource.

posted on Friday, January 11, 2008 at 7:54 AM by Todd Lucier

Mike,
Great summary -- thanks.
Can you clarify #1 a bit. Does that mean that if a user is presented a pg with both ads and organic that 88.5percent of the time they click on the organic and 11.5percent of the time they click on an ad?
Brian.

posted on Friday, January 11, 2008 at 10:56 PM by brian halligan

For #1, technically I believe this particular statistic says that of the total number of clicks (sometimes people search and do not click, or sometimes they click on multiple results) that yes, 88.5% of the clicks are on the organic results.

posted on Monday, January 14, 2008 at 8:14 AM by Mike Volpe

Many times I have had PPC users ask for audits on their clicks, causing me to think they were suspicious of the performance.

posted on Thursday, January 24, 2008 at 9:38 AM by Guy Cook

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