Merchants to Calculate Added Value of Search on Traditional Store Sales
Marketers who have been using search solely to drive online sales are marking a mistake. So says Greg Sterling who writes for SearchEngineLand. It turns out that retailers can garner huge in-store sales increases by using paid search.
Sterling bases his report on research conducted by RevTrax, a retail marketing firm. The results of this research indicate that “for every $1 of e-commerce revenue generated from paid search, marketers can expect to see approximately another $6 of in-store revenue.” RevTrax tracked in-store sales and watched unique IDs and landing page data with the following process:
- The paid search ad was displayed to a shopper.
- The consumer followed the ad to a print or mobile landing page that contained a coupon with a unique code.
- The consumer took the coupon to the traditional store.
- The coupon was tracked back to the search and specific keyword.
Using this data, RevTrax calculated that the average click on each paid search ad brought $15 of traditional store revenue. Some stores recorded much higher returns as a result of the paid search campaigns. In total, about 9% of clicks on these ads resulted in a traditional store sale.
RevTrax says its study proves that merchants are undervaluing the ROI on paid search if they do not take the effect of paid search on in-store sales into account. It’s likely that these study results will prompt merchants to take another look at their paid search spending levels.[Source: Sterling, Greg. Paid Search Drives $6 in Local Sales. SearchEngineLand.com. 10 Dec. 2011. Web. 20 Dec. 2011]