September 14, 2005, 12:00 AM

Study finds SEO produces better returns for more online marketers than PPC

35% of companies that outsource natural search engine optimization and also do PPC advertising say they get a better return from SEO, concludes a survey from iProspect and Jupiter. Only 11% report a better return from PPC ads.

 

Approximately three times more marketers see a higher ROI from search engine optimization than from pay per click advertising, according to a new study by search engine marketing firm iProspect and JupiterResearch.

Of companies that outsource their natural search engine optimization and also do PPC advertising, 35% of those that could measure both outcomes say they get a higher return from search engine optimization. By contrast, only 11% report that they get a higher return from PPC advertising. “I don’t think sophisticated marketers and those familiar with the escalation of bid prices in the PPC marketplace will be surprised by the finding that SEO produces higher ROI. However, novice search engine marketers me be,” says Robert Murray, iProspect president.

The study also determined that one out of two marketers that outsource natural SEO and also do PPC advertising can’t tell which of the two search channels produced a higher ROI. In addition, the study found that one out of seven search marketers measure the overall combined ROI of PPC and SEO campaigns, but can’t separate ROI of the two channels. 42% of search marketers that outsource both natural SEO and PPC efforts say that search engine optimization produces the greater return, the study also found.

“For those new to the search engine marketing space, it would seem logical to conclude that based on the vast number of marketers participating in PPC advertising that it would be a more lucrative channel than search engine optimization, which is known to involve a lot of work,” says Murray. “But the numbers speak for themselves.”

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