New Study Shows How To Earn Six Times As Much As You Do Now By Using Paid Advertisements

By , posted on
Filed Under Marketing & Advertising

Paid Advertising


With all of the SEO forums on the Internet, you might be getting the idea that paid search is dead. Paid search consists of advertisements that you pay for that are included on websites and in many popular search engine results pages. Even FullTraffic's business model is oriented around a "paid search" model. What you might be asking yourself is: "why would I pay for traffic when I can get it for free?" Well, there's a very good reason why you would pay for traffic.

You're already spending money on SEO to help improve your organic ranking, so it's not really free. The only difference between paying for an ad and paying for SEO is that you can track your results with paid ads. It's really hard, if not impossible, to directly measure your results with organic SEO.

Now for the really good news: a new study finds that paid search drives $6 in local sales for every $1 in online sales. The U.S. Commerce Department reports that annual retail sales amount to roughly $4 trillion. If you run an e-commerce site, and you're only concerned with your online revenue, then you're making a huge mistake. If you have a brick-and-mortar business, you should reconsider your marketing efforts if they're focused heavily on organic search optimization.

Retail marketing firm RevTrax conducted the study, showing that paid search has a 6:1 impact on offline sales over e-commerce. If your business is strictly e-commerce, this could give you a clue as to where to focus your efforts. If you run an offline retail store, you now have a good reason to tweak your existing online campaign

Think about it for a moment. If you sell a product or service that could be sold offline, why aren't you doing it? You could continue to use paid search, or restart a dead paid-search campaign, and increase your sales by a factor of 6 without doing anything differently aside from perhaps tweaking your sales page and renting a small space at a local mall. You could also rent out a small individual storefront in a decent location if you live in, or near, a large city.

Between August of 2009, and August of 2011, RevTrax monitored millions of paid search ads for its retail clients. RevTrax implemented a system to accurately track the sales of offline and online sales. They:

  1. Displayed a paid search ad to the consumer.
  2. Allowed the consumer to print a coupon or allowed mobile customers to view a coupon with a unique barcode.
  3. Allowed the consumer to redeem the coupon inside a brick-and-mortar store and;
  4. Tracked the coupon's origination all the way back to the initial search and keyword that led to the sale.


There's really no reason you couldn't do the same thing. You'll have to hire someone who is technically savvy to write the programming code for you. Once it's set up, you can verify for yourself how much additional revenue you're bringing in.

The average value of paid search clicks was estimated to be roughly $15 for products and services sold for less than $200. This means that each click translated into an additional $15 in the store. Some merchants saw an additional $28 of in-store revenue per click. The study also revealed that 9 percent of clicks, on a paid search ad, generated an in-store sale.

This means that for every 100 clicks you get on your advertisement, you get roughly 9 sales in the store. This is in addition to the sales you make online. Finally, RevTrax says that between 40 percent and 50 percent of the customers acquired via paid search, in the study, were new customers. This is incredible. This means that this marketing strategy increased new business, thus effectively expanding the merchant's business as opposed to just increasing repeat business.

Of course, not all products and services translate well to the offline world. Also, since the companies in the study were brick-and-mortar companies that also used online advertising, these kinds of businesses would likely benefit the most from this kind of strategy. If you don't already have an actual storefront, you must take into consideration whether or not you have the funds to open one and still remain profitable.

Finally, you have to be willing to offer a coupon of some kind for your existing products and services and be willing to set up a tracking system. If your profit margins are already thin, this strategy might not work for you.

About the author
David Lewis
David Lewis
David C. Lewis, RFC is the owner of Twin Tier Financial. He writes extensively about personal and business finance, purpose and goal-setting, and both online and offline business marketing. Touch base with David by visiting - Read more stories from .
The Impact of Color on Your Website's SEO and User Engagement The Impact of Color on... By Federico Einhorn
Posted on September 22, 2017
Inbound Marketing in 2018: A 13-Point Checklist for a Powerful Content Strategy Inbound Marketing in... By Federico Einhorn
Posted on September 16, 2017
Five Benefits of SEO Marketing Five Benefits of SEO... By Federico Einhorn
Posted on September 2, 2017