Paid search advertising can provide benefits when used alongside organic search results. A case study from a luxury vehicle brand found a 5.6% increase in website visitors and a 17% increase in overall search traffic when paid ads were displayed alongside organic results. Similarly, a study of a major online retailer found that while organic-only weeks brought slightly more visitors, conversions were 22.98% higher and revenue per visitor was nearly 21.94% higher when paid brand ads were also present. Measuring performance across search engines, the studies found that combining paid and organic approaches captured more new users and led to better results.

1. Paid + Organic: Better Together

4. Outline 1 Lead the Conversation Stand out on the results page by showing first with the message and experience you decide for customers 2 Increase Coverage 3 Target and Measure Precisely

5. Lead the Conversation with Customers Stand out to capture the attention of new customers Connect directly to show all you have to offer Show your new messages immediately

6. Dangerous World Out There Opposition Paid

7. Paid: Get Noticed Easier Than in Natural 8 th Result

8. Paid Ads + Organic Search Captures New Users Source: Luxury Vehicle Brand Case Study; Google, GSD&M, July 2007 1 + 1 = 3! Branded ads supplement performance of natural search In a recent case study, adding branded ads brought in more new visitors % New Visitors to Site Example: Branded 52% 64% 12% Increase Branded Natural

9. Beat the Crowd Your ad can lead the story... ... beating any negative press... ...as your natural result catches up in the rankings

10. Bring Audience to Where You Serve Best Ads provide the opportunity for upselling the customer 0 airline sites on natural search

11. Outline 1 Lead the Conversation 2 Increase Coverage Show on searches throughout the purchase funnel; be there when they think of you, remind them when they don’t 3 Target and Measure Precisely

12. Searchers Use Both Brand & Non-Brand Terms Source: CE Purchasing Process Study, Google & comScore, November 2007. Searchers: all products n= 925; computer n= 397; digital camera= 139; television n= 114 Computer Searchers TV Searchers 37% Digital Camera Searchers 38% 25% Non-Brand Brand Non-Brand 33% Brand 57% 10% 35% 47% 18% Non-Brand Brand

13. Resulting in Brand and Non-Brand Clicks Retail Clicks E-Commerce Clicks Consumer Electronics Searches Sources: Compete Inc./Google February 2008; 360i/SearchIngite, “Giving Clicks Credit Where They’re Due,” Q12006; CE Purchasing Process Study, Google & comScore, November 2007 49% 51% 53% 47% 48% 52% Non-Brand Brand

14. Non-Brand Matters Throughout the Search Process Non-brand Brand Purchaser Click Preference by Type- Retail Vertical Point of Conversion Non-Branded From Start To Finish Source: Compete Inc./Google February 2008. Percent of non-branded and branded clicks by maximum across all categories, prior to purchase

15. Awareness: General Search, Paid Only Option A paid ad is often a brand’s only chance to show on such a general search. Sony is left out here while resellers may lead to competitors. Purchase Interest Awareness Consideration Search term: big screen tv

16. Interest: Get Them To the Features As the search gets more specific, so do the ads. Competitor brands now appear as Sony is still left out. Purchase Interest Awareness Consideration Search term: lcd flat screen TV

17. Consideration: Consumers Looking For Brand Brand level: Resellers/reviews detract from connection Sony’s ad here allows them to connect directly with the user. Purchase Interest Awareness Consideration Search term: sony lcd tv

18. Purchase: Be There When They Decide Searching for a model number, this user is likely ready to buy. Sony’s presence here keeps them in the game and top of mind. Purchase Interest Awareness Consideration Search term: Sony KDL 46XBR3

19. More Searches + More Ads = More Traffic The search landscape is growing and ever-changing 20~25% of searches have not been seen in the last 30 days** Past ads influence future searches and conversions 12.6% of conversions credited to natural search were preceded by ad clicks* Customers convert after multiple searches & clicks 37% of conversions happened as a result of multiple ad clicks* *Giving Clicks Credit Where They’re Due, Part Two: The Value of Assists for Natural and Paid Search Conversions. 360i/SearchIgnite August 2006 **Estimate Paid ads help you stay present on new long-tail searches Ads on long-tail searches keep your brand in mind for future ones Place targeted ads that drive interest and generate searches for your brand

20. Outline 1 Lead the Conversation 2 Increase Coverage 3 Target and Measure Precisely Accurately target customers with control features and monitor advertising effectiveness with robust reporting tools for increased ROI

22. Ads Allow You to Measure ROI & Other Metrics How often do you show on the results page? What is the ROI for your marketing campaigns? Which listings are most appealing to customers? Tracking impressions gives you insight into how much exposure your brand is getting with Google. By looking your CTR, you can determine how attractive your listing is to customers and then adjust. Closely and easily monitor your ROI with data directly from your AdWords account.

25. Thank You

26. Appendix A Benefits of Paid + Organic

27. Effect of Paid + Natural Is Still Even Deeper: Honda Case Study- Brand Association Honda Other None “ When you think of fuel-efficient cars, which come to mind?” 42% point gap between Honda and another brand 16% Control Side Sponsored Top Sponsored Listing Top Sponsored & Top Organic Top Organic Listing 0% 10% 20% 30% 40% 50% 60% 70% Source: Enquiro Search Solutions, Inc., July 2007; Note: There is a significant (7% point) increase from Control to Side Sponsored, as well. Query: Unbranded (i.e., “fuel efficient cars”) Increase in Brand Association

28. In Addition, Increase In Purchase Intent +8% Honda Other 0% 10% 20% 30% 40% 50% 60% 70% “ From the list below, indicate which of these brands you would consider if you were looking to purchase a fuel-efficient or environmentally friendly car.” Source: Enquiro Search Solutions, Inc., July 2007. Query: Unbranded (i.e., “fuel efficient cars”) Control Top Organic Listing Top Sponsored Listing Top Sponsored & Top Organic Side Sponsored

29. Increase in Brand Impact in More Verticals… Across all categories, there is a consistent “ lift ” across several brand measures. . . Blue square denotes stat. sig. difference against the Control at a 95% confidence level Light Blue square denotes stat. sig. difference against the Control at a 80% confidence level + 3 pts - - - - - Cosmetics + 5 pts - + 6 pts + 5 pts - Household Cleaning - - - + 6 pts - Food/Snack - + 6 pts + 6 pts + 5 pts + 6 pts Beverage Purchase Intent - + 7 pts - - - Cosmetics - + 4 pts - - - Household Cleaning + 9 pts + 7 pts - + 11 pts + 7 pts Food/Snack - - + 3 pts - - Beverage Purchase Consideration - + 4 pts + 5 pts + 4 pts - Cosmetics - - - Household Cleaning + 3 pts - - - Food/Snack + 2 pts - - - Beverage Aided Awareness + 45 pts + 47 pts + 17 pts + 28 pts + 39 pts Cosmetics + 9 pts - Household Cleaning + 30 pts + 31 pts + 14 pts + 32 pts Food/Snack - + 10 pts - Beverage Unaided Awareness Organic + Side Spnd. Organic + Top Spnd. Side Spnd. Top Spnd. Organic Brand Measures + 6 pts + 11 pts + 10 pts + 5 pts + 6 pts + 9 pts + 10 pts