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The Why Behind Paid Search Trends: Measurability

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There are countless reports that paid search is on the rise and is projected to continue trending upwards. But what are the driving forces behind the dramatic increases? A new paper by OneUpWeb examined that very question and came up with a resounding answer: It's all about measurability.

Paid search offers unprecedented ability to measure, and the nature of the platform enables companies to quickly adjust campaigns according to analytical data or market conditions. Additionally, upfront costs are low because PPC ads are so darn cheap to create.

"We found, among all of our clients, that paid search improves lead generation and customer traffic. It increases conversion rates and suggested sales, and even improves brand recognition," said OneUpWeb's CEO Lisa Wehr. "Paid search is a win-win proposition."

According to the paper, paid search accounts for more than three times the dollar revenue of classified ads, the nearest online marketing format. In 2007, paid search claimed 48 percent of the total U.S. online ad spend. In 2006, paid search grew 32.2 percent, while traditional media grew just .5 percent.

Managing PPC campaigns can be tricky. Last week, Marty Weintraub examined how to conduct PPC triage on a dying AdWords account. One of his conclusions was to integrate with natural search strategies, something OneUpWeb also found.

"When integrated with a natural search engine optimization (SEO) campaign, and overall marketing plan, it will return more for every dollar spent," said Wehr.


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