The Marketing Architects
Nerd Alert: How Effective is Paid Search?
Jan 9, 2025
Elena and Rob dive into an intriguing eBay experiment that challenges the effectiveness of paid search ads. They uncover that many brand-keyword ads target customers who would have found the site organically. Surprisingly, non-branded keywords can even result in negative ROI. The hosts discuss how frequent buyers react to these ads and why established brands may need to reassess their strategies. Plus, they share humorous takes on the differences between clicking on paid and organic search results, setting the stage for deeper insights.
12:27
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Quick takeaways
- The eBay experiment revealed that established brands may overspend on paid search ads without achieving significant sales returns.
- Frequent customers tend to bypass paid ads, indicating that marketers should target less familiar audiences to improve ad effectiveness.
Deep dives
The Ineffectiveness of Paid Search Ads
Research indicates that paid search ads have a minimal impact on driving sales for well-established brands. A study conducted by eBay demonstrated that when they turned off branded keywords, their overall sales did not decrease, as most customers still reached their site through organic search. In contrast, non-branded keywords did attract some new customers, but the cost of acquiring these customers often outweighed the revenue generated. Essentially, the findings reveal that prominent brands may be overspending on paid search without achieving meaningful returns.
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