 A study conducted in January 2001 by NPD Group, a research firm specializing in consumer purchasing and behavior, tested the impact of search listings, banner ads and tile ads across a variety of sites (both branded and unbranded) to determine which was most effective. As the graph to the right displays, the results were that consumers are most likely to become a customer after finding your website through a search engine...more than five times more likely than from a banner ad.
The study also concluded that users are more likely to read a search listing than a banner ad by an 8:1 ratio, and more likely to actually click through to a website from a search listing than a banner ad by an amazing 20:1 ratio. Additionally, sites found through search listings are thought of more favorably than those using banner and tile ads, and search listings produce far greater levels of site awareness than the other methods.
 The Wall Street Journal article “Ads Click” from October 29, 2001 confirmed that pay for placement advertising produced the highest return on
investment and won the most points for overall satisfaction. These
findings were from the Jupiter Media Metrix (a leading research and analysis company) "Online Advertising
Effectiveness Study" from August 2001, which analyzed the performance of CPC banners, CPM
banners, Opt-In Emails, Paid Inclusion Products and Pay for Performance
Search. Another Jupiter study from July 2001, “Paid Search Engine Placement,”
highlighted why the pay-for-placement model works. Here are some key findings
from both reports:
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Respondents say that they received the
highest return on investment (ROI) from pay for placement search when
compared to CPC banners, CPM banners, and opt-in e-mail campaigns.
- Online advertisers have a significantly higher level of
satisfaction with search listings than with any other online advertising
method they have used or are currently using.
- When consumers are looking for a product to buy online, 42% use a search engine.
- Paid search placement succeeds because consumers find relevant
advertiser listings, while advertisers only pay for qualified traffic
coming to their site.
Paid search placement has proven to be one of the most successful online advertising models because it aligns consumer need with advertiser interest. This research confirms the power of paid search listings in driving bottom line results. Take advantage of the advertising vehicle that can put your business on top of the search results from almost every major portal, search engine, and internet browser. Sign up now!
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