eBay questions value of advertising on Google

14 Mar

eBay questions value of advertising on Google

A report by eBay finds that paying for AdWords does not boost its sales and that users mostly click through to its site via the organic results. “Removal of these [Google] advertisements simply raised the prominence of the eBay natural search result. Shutting paid search advertisements closed one (costly) path to a firm’s website but diverted traffic to the next easiest path (natural search), which is free to the advertiser.”

As Dr Philip Alford, director of Bournemouth University’s School of Tourism Digital Hub noted, the size of the brand makes a big difference to the effectiveness of paid searches. For SMEs, the take away is that organic optimisation on all your keywords, branded and non-, will bring better sales and brand impact ROI than will keyword buys. And if you’re going to buy keywords anyway, make sure your landing pages are optimised because Google takes that into account in its Quality ranking — which partly determines both your ad positioning and what you pay for it.

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