Organic Search Clicks vs. PPC

Monday, December 8, 2008 by SEO for Law Firm Websites
At FindLaw, we regularly hear the question: “What percentage of clicks on a search result are made to organic listings versus paid search advertisements?”
Enquisite, a web analytics company, recently presented statistics around this question at the Search Insider Summit. Their data is based on a study of more than 5,000 sites in various industries.

Here’s the highlight relative to the PPC vs. organic question:
  • For every click on a PPC advertisement, the organic listings generate 8.5 clicks.
  • PPC clicks convert (using site-appropriate metrics) at a rate of 1.5 times that of organic clicks.
The reason PPC may convert at a higher rate than organic search is the high degree of optimization around specific search terms. Organic search refers a greater variety of terms, all of which may not be highly targeted by the destination page. Poorly targeted paid search campaigns may convert at a far lower rate than those campaigns studied by Enquisite.

The Search Engine Marketing Professional Organization (SEMPO), via industry studies, indicates that 88% of search spending is in the area of paid search, with 10% being spent in organic optimization (2007 numbers).

Obviously, with 8.5 times the click-through rate as PPC, organic search optimization offers great market opportunity. There are many reasons a firm might wish to invest - or continue investing - in a PPC campaign. However, the market opportunity for both organic search and PPC show that it is a best practice for paid search advertisers to strongly consider organic investment!

Julie Kosbab
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