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Does Paid Search Engine Placement Affect Site Traffic
Chris Richardson
Contributing Writer
2004-07-14
 Insider Reports RSS Feed
Atlas DMT performed a study that researched whether or not paid search placement has an affect on the amount of traffic sites with paid listings receive. This study does not focus solely on paid inclusion. It also takes into account the exploding trend of companies employing SEM.
Young-Bean Song, director of analytics and the Atlas Institute, Atlas DMT asked, "What does being number one in search really mean to your business? Just like any other marketing channel, success for search is about balancing cost and volume. Understanding those trade-offs is the focus of this research."
The study found that difference in the amount of traffic between the first position and the tenth position is about 10 times. The research also discovered that the two major search engines, Google and Yahoo, have "significant differences" in the amount of traffic their respective paid listings produce.
The first position ad on Google sees 40 percent more traffic than does the second position placement. Because of this data, if a large amount of traffic were a site's goal, then paying for the first position on Google would be a wise move. However, at Yahoo-owned Overture, the drop is less severe. According to the study, Overture delivers to advertisers increased traffic potential for rankings when compared to Google.
"Paying for the number one ranking may not be the best strategy for all advertisers," commented Song. "For some marketers the cost of traffic associated with the top ranking may be too high. On the other hand, some marketers are forgoing the top spot, without really knowing how many customers they are losing to their competitors. Most advertisers don't know whether they are paying too much, or needlessly missing out on sales."
About the Author:
Chris Richardson is a search engine writer for WebProNews. Visit WebProNews for the latest search news.
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