Bazaar.pdf - Bazaar 1 Myra and Bob discuss the notion that...

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Bazaar 1. Myra and Bob discuss the notion that a branded search (e.g. “Bazaar shoes”) may result in an organic click even when a paid ad is not present. Of course, this presumes Bazaar has an organic link in the SERP. How would a non-branded search (e.g. “shoes”) a ff ect this conversation and what assumptions would be made? Myra and Bob’s discussion relates to a base case that attempts to justify the spend on specific and branded keywords for paid advertisement on search engines. Bob goes through his return on ad-spend analysis and demonstrates that when Bazaar’s average purchase conversion and profit margin is taken into account, the ROI for paid search is tremendous. Myra then makes the point that users whose search term already includes Bazaar may already be on the way to explore and purchase on Bazaar anyways; in this case, does paying for a sponsored link actually generate meaningful lift over organic clicks? There are a few factors to consider here. For instance, are Bazaar’s competitors running paid ads that broad keyword matches to a ‘Bazaar shoes’ query? On Google, searching for a particular company does not guarantee that a competitor cannot show up prominently in the sponsored positions. This is especially true for queries that include other terms such as the product that the user is looking for. If Bazaar does not purchase PPC, a competitor’s ad link may show up at the top position (and we know that clickthrough rate peaks at the top positions with a power curve decline) over Bazaar’s even if Bazaar has very strong SEO ranked organic links.

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