Paid-for search words a waster of money: eBay

Paid-for search words a waster of money: eBay
SHARE
THIS



A study by eBay has found that paid search terms for it and other well-known brands is all but a complete waste of money.

Consumer Heterogeneity and Paid Search Effectiveness: A Large Scale Field Experiment concluded that “brand-keyword ads have no short-term beneÔ¨Åts, and that returns from all other keywords are a fraction of conventional estimates. We Ô¨Ånd that new and infrequent users are positively inÔ¨Çuenced by ads but that existing loyal users whose purchasing behavior is not inÔ¨Çuenced by paid search account for most of the advertising expenses, resulting in average returns that are negative.”

The study found that because companies with such household names as eBay fared so well in organic searches, paid for search results only tended to push them out of the road.

It concluded that “of the $31.7 billion that was spent in the US in 2011 on Internet advertising, the top 10 spenders in this channel account for about $2.36 billion. These companies generally use the same methods and the same consulting Ô¨Årms to design their ad campaigns and there are many reasons to think that the results we presented above would generalise to these large and well-known corporations.”

A spokesman for Google Australia said: “Google’s own studies, based on results from hundreds of advertisers, have found that more than 89% of search ad clicks were incremental and that 50% of the search ad clicks were incremental even when there was an organic search result for the advertiser in the top position.

“Since outcomes differ so much among advertisers and are influenced by many different factors, we encourage advertisers to experiment with their own campaigns.  We provide tools such as AdWords Campaign Experiments and Content Experiments and recommend a statistical method for advertisers to conduct their own geo-targeted experiments.”

Please login with linkedin to comment

Latest News

Clemenger BBDO’s ‘Exceptions To The Rule’ Recruitment Program Now Open
  • Advertising

Clemenger BBDO’s ‘Exceptions To The Rule’ Recruitment Program Now Open

The annual search for Australia’s best and brightest talent has launched today through Clemenger BBDO’s ‘Exceptions to the Rule’ program, with applications open for placements across Clemenger BBDO Melbourne and Sydney. ‘Exceptions to the Rule’ is a commitment to the agency’s belief that the future leaders of the creative industry aren’t solely coming through traditional […]

The Six Types Of Meetings People Despise
  • Media

The Six Types Of Meetings People Despise

Donna McGeorge (pictured below) is a speaker, author and mentor who helps people make their work work. She is also author of The 25-Minute Meeting: Half the Time, Double the Impact. In this guest post, McGeorge says most of us despise the office meeting and here’s the six worst types… I once heard a very senior leader […]

Opinion

by B&T Magazine

B&T Magazine
Mango Melbourne Announces Three New PR & Event Hires
  • Marketing

Mango Melbourne Announces Three New PR & Event Hires

Mango Melbourne, part of the DDB Group, has welcomed three new team members following recent business growth. Carol Laws (right in photo), Janette Henstridge (left) and Maddie Poulson (middle) bring with them experience across PR and events, in sectors including consumer, retail, telecommunications and fashion. An account director with previous roles at Kate & Co […]

Why Curiosity Matters In Leadership
  • Opinion

Why Curiosity Matters In Leadership

Corrine Armour (pictured below) is a leadership expert who helps leaders and organisations develop fearless leadership and deliver transformational results. Armour is also the author of Leaders Who Ask: Building Fearless Cultures by telling less and asking more. In this guest post, she asks are you a genuinely curious leader or just a judgemental one? Curiosity creates […]

Opinion

by B&T Magazine

B&T Magazine
Businesswoman hand connecting jigsaw puzzle, Business solutions, success and strategy concept
  • Media

Tealium Partners With The Lumery

Tealium, the leader in real-time customer data orchestration solutions, and The Lumery, a full-service customer experience agency, have partnered to bring to life the vision of a full MarTech ecosystem for Vocus Communications. Vocus recognised a huge opportunity for growth through the digitisation of their consumer brands. As such, Vocus has begun the process of […]

McCann Names New MD For Melbourne
  • Advertising

McCann Names New MD For Melbourne

McCann's new Melbourne MD is promising sweeping changes. Well, at the very least delicate carpet shampoo changes.