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] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.