For years, ecommerce marketing budgets have increasingly been allocated to paid search efforts – no doubt one of the many marketing budgets driving Google’s financial success.
However, anecdotal evidence is emerging that this trend may have peaked. Results from the 2006 holiday season suggest the conversion rate from paid search is trailing those from other business drivers such as email and comparison shopping engines.
What do you think?
2 comments:
Businesses are definitly more concerned with natural search these days and rightly so. It's a well-known fact that a natural search option is considered a more trusted and relevant source - not always the case with a PPC ad. It's especially important when it comes to shopping. You expect straight up retailers to have good natural rankings.
One problem with 'paid search' nowadays is the probable irrelevance of the search result.
Companies pay big money for popular words and phrases greatly affecting the quality of search results.
Fortunately, companies employing intelligent SEO practices on their site are enjoying dramatic increase in ranking.
The right recipe seems to be a mixture of paid search and careful eCommerce site design.
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