Monday November 7th 2011

Pay Per Click Advertising

Is Pay Per Click advertising losing its appeal, If you believe the results of two recent reports the answer is yes!

The results from the first annual Webmarketing123 State of Digital Marketing Survey suggest that SEO is seen as the most effective form of online lead generation. In the survey, 500 people who market to either businesses or consumers (or both) were asked what form of online marketing has the most impact on sales and lead generation, and the results are interesting. The participants felt that SEO had the most impact, at 57% and 41% for B2B and B2C respectively, followed by Pay Per Click at 25% (B2B) and 34% (B2C), with social media trailing somewhat behind at 18% (B2B) and 25% (B2C). While Social Media was seen as having a lower impact when compared to this time last year, it has seen the most extensive growth.

This report, while fairly anecdotal, is very similar to one released a month or so back. In both studies, the confidence in using PPC as a lead generation solution was the most surprising. Historically PPC has been seen as the work horse of lead generation, while SEO was the slow and steady brand support program with social media as a wild card.

This report suggests that PPC is only responsible for between 1/4 and 1/3 of leads generated. If that is a real number, given the amount of money spent on PPC advertising, it might suggest that either good old fashioned SEO and Social Media represent the best ROI…or perhaps PPC ads are not the great value they used to be. PPC advertising is by definition auction based, the theory being that the market will set the price and establish the value. Social Media ad revenues are growing quite rapidly as growth in search ad revenues slow somewhat. Facebook is generating a disruptively large amount of display advertising inventory, to the point where it’s single handedly skewing the online display space.

While the statistics are surprising, what isn’t surprising is that a successful online marketing campaign should include all three; PPC, SEO and Social Media… or is that SEO, Social Media and PPC?

About the Author – Tim Judd is the CEO of MyLocally and Search Initiatives.  He is a pioneer in the Search Industry and frequently speaks or participates at Search Conferences through out the United States.  His interesting perspective on Search statistics and witty prose make Tim’s blogs a favorite.  Check out his other blogs on, and


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