Google Study of Incremental Clicks from Search Ads
Yesterday, I came across this interesting study about whether or not search advertising adds or detracts clicks from organic listings. The study found that 89% of the traffic generated from search clicks weren’t replaced by organic clicks if they were paused. It was developed by Googlers so the study probably wouldn’t have been released if the results didn’t aid their bread-and-butter business model. I do like the fact that they used statistical modeling (very reminiscent of b-school) to derive their results. They do note limitations to their study including seasonality, differences in verticals, and lack of a true test group (they were looking at aggregate data from their advertisers). While I think that the focus of the study on clicks is interesting, I think a study devoted to conversions would be even more powerful and enlightening. It’s great that overall traffic rises and so should conversions but how much incremental conversions come from paid advertising would be a better question to answer. Pretty interesting stuff nonetheless.

