eBay study highlights big problem for search advertising
"A study by online auction firm eBay has revealed that paying for keywords to boost rankings by search engines has little effect on sales.
This was the conclusion of a study that analysed the effect on sales of removing sponsored keywords from some search engines such as MSN and Yahoo, while retaining them on Google.
In theory, a company will boost sales by ranking highly in online searches that include any keyword that it has sponsored.
However, the eBay study found that most people who clicked on sponsored search results were loyal customers already.
‘Incremental revenue from paid search was far smaller than expected because existing customers would have come to eBay regardless,’ the company said.”
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