Pay Per Click Means KaChing for Online Retailers

03/11/2008

Online retailers in the US are in love with pay-per-click advertising. And, with good reason. More than 64% of the online merchants interviewed by Internet Retailer in February 2008 said their conversion rates were higher than 5%. The industry accepted norm is 1.5% to 3%.

Other findings by the Vovici study: Over 50% of online retailers reported spending at least 40% of their ad budgets on search engine marketing (SEM). Of these, a quarter reported that SEM made up more than 75% of their budgets.

Almost 50% of respondents reported an increase in their PPC conversion rates. Some industry experts attribute this to retailers bidding on product and SKU-specific keywords and phrases.

33% of online retailers used natural search as an SEM technique; 20% used PPC and natural search equally.

eMarketer forecasts an increase in SEM spending through 2011, with more than 50% continuing to go paid search ads.

For more insight visit Pay Per Click Management