Online Shops Put Search To Work

• Posted: Thursday, March 13, 2008
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• Author: pradhana
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• Filed under: Online Services

Pay-per-click is the tactic of choice.

Search marketing continues to work for US online retailers, and they plan to keep spending on it, according to an Internet Retailer-sponsored study conducted in February 2008 by Vovici.

More than one-half of the online merchants surveyed said they spent at least 40% of their budgets on search engine marketing (SEM) — including 25% who said that more than three-quarters of their budgets were going to SEM.

Pay-per-click search marketing worked especially well for responding online retailers during the past year. Nearly one-half of responding merchants said they had increased their pay-per-click conversion rates.

SEM analysts and digital advertising agencies with retailer accounts interviewed by Internet Retailer said that a successful pay-per-click campaign should generate conversion rates of 1.5% to 3%. Yet 64.1% of respondents said their conversion rate on a typical paid search campaign was higher than 5%.

Read more - eMarketer

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