Across the board, many companies question whether a pay per click advertising campaign is worth the investment. The main reason why businesses suspect they have not gained enough ROI from their pay per click advertising campaign is because they don’t really track their sales accurately. They don’t ask “how did you hear about us?” or have a form that asks the very same question. Let me prove my point with a two year study performed by retail marketing firm, RevTrax…
Here’s the big discovery from the survey: pay per click advertising had a 6:1 impact on offline sales over e-commerce. I know what you’re thinking. 6:1 is pretty ridiculous, right? Exactly. Here’s how RevTrax conducted the initial experiment:
- A pay per click ad was displayed to a consumer.
- The pay per click ad led the consumer to a printable or mobile landing page presenting a coupon with a distinctive barcode.
- The consumer redeemed the coupon inside the actual store.
- Each coupon was then tracked back to the online search (as well as the keyword).
Since RevTrax used coupons with a unique barcode on each landing page, they were able to precisely track the impact of pay per click advertising on in-store sales, such as this finding:
“The average click on a paid search ad generated approximately $15 of in-store revenue, with some merchants seeing as much as $28 of in-store revenue.”
Note: The average transaction size in the study was under $200.
On the whole, this study proves pay per click advertising can have a real genuine impact on your revenue, even if you realize it or not. So don’t forget to ask your new customers where they heard about your business. And look at your Google Analytics, too. Spend time reviewing your website activity before your pay per click advertising campaign started and a few months after your pay per click advertising campaign begins. You should see your site traffic increase with newer visitors. If you don’t, then feel free to reach out to me.
If you’ve started a pay per click advertising campaign, what effect has it had on your revenues and number of new customers acquired? How do you track your efforts?
About Alan Moore: Alan is an Internet Marketing Consultant with ReachLocal Baltimore. His mission is to help you increase your revenues and decrease unproductive advertising expenses through proven, online marketing strategies. He manages over $1.4 million in yearly marketing budgets and has worked with local businesses, agencies and the US government. Give him a call at (877)655-3438 to schedule a free consultation.
Go to http://searchengineland.com/paid-search-drives-6-in-local-sales-for-every-1-spent-online-study-104183 to learn more about the research by RevTrax.