CHICAGO and SAN FRANCISCO, Sept. 26, 2013
/PRNewswire/ -- Global digital marketing leaders Resolution
Media (www.resolutionmedia.com) and Kenshoo (www.Kenshoo.com)
published The Search Sandbox today that analyzes the
relationship between Paid and Organic Search Marketing for a major
retail division of Hewlett Packard (HP) (www.hp.com) in
the United States. The dataset
covers millions of visits for each of the Paid and Organic Search
channels and addresses more than $10
million in direct online sales conversion revenue for each
channel.
"Search is a foundational channel within the marketing mix, and
we're constantly striving for new ways to maximize its
performance," said Mark Grote, World
Wide Search Advertising Manager of Hewlett-Packard. "Working with
Kenshoo, Resolution continues to provide new perspectives on how to
best balance paid and organic search. A lot of marketers can
benefit from the insights we've uncovered here."
Key findings from the report include:
- Paid Search drives higher Net Revenue per Visit (Paid Search
revenue minus the direct media costs from those clicks) than
Organic Search
- Even with the Organic result at first position, consumers still
click and convert on Paid listings 39.6% of the time
- Paid Search is the only viable option when Organic results fall
off the first page, garnering 93.1% of a keyword's Click Share
(percentage of total clicks achieved when both a Paid Search and
Organic listing appear together)
- Organic Search drives a slightly higher Click Share (52.4% vs.
47.6%) and Net Revenue Share (53.5% vs. 46.5%) on brand keywords
versus Paid Search
- Paid Search performance outpaces that of Organic Search for
non-brand keywords with a 77.2% Click Share and a 70.3% Net Revenue
Share
"Putting campaigns on auto-pilot is not an option, since the
paid and organic search marketplaces are in constant motion.
Ranking factors fluctuate, competitors enter and leave the market,
and consumer behaviors continuously evolve," says Alan Osetek, Global President of Resolution
Media. "Resolution strives to help brands like HP balance the roles
of organic and paid search, search within digital, and digital as a
critical part of discovery marketing."
Aaron Goldman, chief marketing
officer at Kenshoo adds, "This research puts to rest the
controversy over running paid search advertising for brands that
have strong organic coverage. Our study shows that visitors
arriving from paid search are more profitable than those arriving
from organic search, even when you take into account traffic
acquisition costs. Smart marketers, like those at Resolution and HP
are embracing a holistic approach to search engine marketing to get
the most out of their investment."
For the purposes of this study, Resolution Media and Kenshoo
analyzed a full year (Feb. 28, 2012 –
March 1, 2013) of U.S. campaign
performance results from the Imaging and Printing Group (IPG) of
Hewlett Packard (HP). The data set focuses solely on clicks and
visits and includes only instances where both a Paid Search listing
and (at least one) Organic Search listing were triggered by the
same keyword.
The complete report, entitled The Search Sandbox: Paid plays
well with Organic, can be downloaded at
www.ResolutionMedia.com/us/white-papers/SearchSandbox or
www.Kenshoo.com/SearchSandbox.
About HP
HP creates new possibilities for technology
to have a meaningful impact on people, businesses, governments and
society. With the broadest technology portfolio spanning printing,
personal systems, software, services and IT infrastructure, HP
delivers solutions for customers' most complex challenges in every
region of the world. More information about HP (NYSE: HPQ) is
available at http://www.hp.com.
About Resolution Media
Resolution Media, an Omnicom
Media Group company, is one of the largest search agencies in the
world. The company manages more than $1.2B in media investments, with more than 500
specialists in 60+ offices worldwide. Resolution's international
network delivers digitally-integrated, full-service solutions in
the areas of search, social, local, mobile, behavioral and content
marketing.
For more information, please
visit www.ResolutionMedia.com.
About Kenshoo
Kenshoo is a digital marketing
technology company that engineers premium solutions for search
marketing, social media and online advertising. Brands, agencies
and developers use Kenshoo Search, Kenshoo Social, Kenshoo Local
and Kenshoo SmartPath to direct more than $25 billion in annual client sales revenue. The
Kenshoo platform delivers Infinite OptimizationTM
through closed-loop targeting, universal integration, and dynamic
attribution. Kenshoo's adaptive technology, proven algorithms, and
unmatched scale power campaigns in more than 190 countries for
nearly half of the Fortune 50 and all 10 top global ad agency
networks. Kenshoo clients include CareerBuilder, Expedia, Facebook,
KAYAK, Havas Media, Hitwise, iREP, John
Lewis, Resolution Media, Sears, Starcom MediaVest Group,
Tesco, Travelocity, Walgreens, and Zappos. Kenshoo has 18
international locations and is backed by Sequoia Capital, Arts
Alliance and Tenaya Capital. Please visit www.Kenshoo.com for more
information.
Resolution Media and Kenshoo brand and product names are
trademarks of Resolution Media, Inc. and Kenshoo Ltd. Other company
and brand names may be trademarks of their respective
owners.
Contact:
Isabelle Gauvry
917
435 6457
Isabelle.gauvry@omnicommediagroup.com
SOURCE Resolution Media