paid search is still being used by many big advertisers' but over time they should shift their dollars to SEO (search engine optimization) to deliver longer lasting impact and lower overall cost for clicks.

1. Optimizing Search
Returns
Dr. Augustine Fou
http://www.linkedin.com/in/augustinefou
July 20, 2012.

2. Advertisers getting more savvy
Look for ways to optimize organically, to reduce paid cost
July 20, 2012 2

3. Search – Paid vs Organic
Shift allocation to organic to get lower cost per click
July 20, 2012 3

4. Focus on longer search terms
• Users are searching longer terms
• Users click more on ads related to
longer terms
Source: Chitika, June 2010 Source: Chitika, Jan 2012
July 18, 2012 4

5. Users click on natural results
Most users
click on
natural search
results
15-25% of clicks Natural results
1-9% avg CTRs have 10x the
click through
rate of paid ads
75-85% of clicks
13-21% avg CTRs
Source: go-Digital Blog, July 2012

6. Users are very savvy
The more
specific the
search (longer
query length,
in # of words)
the higher the
click through
rate (CTR) on
first search
result.
Source: Just Search, May 2010

7. Optimizing Search
Paid/ SEM Organic
For long tail, For brand terms
descriptive and expensive
keywords keywords
CTR 1 - 5% 13 - 21%
CPC $1 - $10 FREE
Source: SlingShot SEO
Shift allocation to get more clicks at lower cost
July 18, 2012 7

8. So What?
“As users get more savvy in their search
and as advertisers get more savvy and
focused on returns, search investment
should shift from paid search to organic
optimization, which also leads to longer
term payoff.”
- Dr. Augustine Fou
April 25, 2012 8

9. Dr. Augustine Fou – Chief Digital Strategist
“I advise clients on benchmarking
and then optimizing their digital
marketing activities, with a focus
on search optimization.”
FORMER CHIEF DIGITAL OFFICER, HCG (OMNICOM)
MCKINSEY CONSULTANT
CLIENT SIDE / AGENCY SIDE EXPERIENCE
PROFESSOR AND COLUMNIST
ENTREPRENEUR / SMALL BUSINESS OWNER
PHD MATERIALS SCIENCE (MIT '95) AT AGE 23
ClickZ Articles: http://www.clickz.com/author/1151/augustine-fou
Slideshares: http://www.slideshare.net/augustinefou
LinkedIn: http://www.linkedin.com/in/augustinefou
July 20, 2012 9
acfou@mktsci.com

10. APPENDIX
July 20, 2012 10

11. Search – Paid vs Organic
• 90% of users click on organic side • Cost per click on SEO is under
• Less than 10% click on paid ads $0.10 per click
• CPC on paid side is more than 7x
higher, greater than $0.60 per click
http://blog.triphp.com/marketing/organic-vs-ppc-search-engine-marketing.html Feb 2009
July 20, 2012 11

12. Search – Paid vs Organic
“After you
determine the
right keywords,
you can start
using theses
keywords for
your SEO
optimization
efforts.”
Source; http://ispionage.info/why-it-is-important-to-use-ppc-to-help-
you-in-your-seo-efforts.html
July 20, 2012 12

13. Advertisers still overspend
on paid search ads
89% of ad dollars spent on paid 89% of clicks come from
search SEO/organic search
Source: http://www.torontoseofirm.com/ppc-vs-seo-payoff/ Feb 2010
July 20, 2012 13