14 Nov '11, 6pm

Brand Ad Cannibalism: A Tale Of Two Tests

Brand Ad Cannibalism: A Tale Of Two Tests

Should companies pay for ads on their brand name? There are plenty of good reasons to do so regardless of the ROI, but those keenly interested in ROI and vexed by the concept of paying for traffic on their trademarks still ask the question. We’ve done some research on this topic that we’ll share below. We focused on trying to answer a couple of specific questions: Do brand ads cannibalize traffic from organic listings? and If the answer to the first question is: “it depends”, on what does it seem to depend? First let’s define our terms. What do we mean by ads cannibalizing traffic? The impact on traffic and eventual revenue of combining ads with organic listings can take many forms. A concept that might be useful to discuss is: The incremental traffic ratio (“ITR”) of ads. That is the fraction of the reported clicks on an ad that are in fact incremental. Let’s say that abs...

Full article: http://searchengineland.com/brand-ad-cannibalism-a-tale-o...

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