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ExtraTorrent.cc > Articles > eBay Claimed Paid Search Ads Don’t Work

eBay Claimed Paid Search Ads Don’t Work

eBay Claimed Paid Search Ads Don’t Work

Added: Friday, June 13th, 2014
Category: Recent Headlines Involving File Sharing > Current Events
Tags:ET, p2p, Torrent, Piracy, Peer To Peer, Network, Hackers, Internet, BitTorrent, Google, utorrent, bitcomet, extratorrent, 2013, www.extratorrent.cc
The research, carried out by eBay in cooperation with Berkeley and Chicago universities, found out that adverts in search engines have no measurable benefits. eBay provided the researchers with the ability to experiment with how and when it purchased search adverts.

The results showed that most search advertisements on most search terms had almost no affect on sales, which means that the medium may already be beyond the peak of its efficacy. A lot of companies purchase adverts on searches for their brand. For example, the auction site may buy ads on searches for the term “eBay” or “eBay shoes”. But the truth is that such adverts do nothing else than encourage users to click on the ad instead of the normal search result to the same website.

According to the research, virtually all of the forgone click traffic and sales attributed to it were captured by natural search. In other words, substitution between paid and unpaid traffic was almost complete. It turned out that shutting off paid search adverts closed just one (expensive) way to eBay, but diverted traffic to natural search. The latter is, of course, free to the company.

As for those who buy space on search results for so-called “generic terms”, like “memory” or “mobile phone”, they can relax – they don’t spend money on nothing. The research revealed that organic placement for non-branded terms varies widely. This means that a website won’t show up on the front page for a search term if it doesn’t pay for generic terms. However, the researchers tried to find out whether dropping off the front page would matter to sales.

When they stopped advertising eBay entirely on non-branded search terms to 30% of the United States for 2 months, they discovered that it had insignificant effect on sales. Indeed, on average, American consumers don’t shop more on eBay when the company pays for search ads.

In addition, the adverts had no effect on a subset of eBay users: those who had just signed up, or those who had made fewer than 3 purchases in a year. The others are likely to be familiar with the site’s offerings and value proposition, and are therefore unaffected by paid search ads, going directly to the site without searching for it.

The results of this research raise significant questions about the value of the search advertising market, where Google is the biggest supplier. Last year, it made $37 billion from its various sites – 2/3 of its gross revenue.

Posted by:  SuperAdmin
Date:  Friday, June 13th, 2014

Comments (4) (please add your comment »)

posted by Blocked (2014-06-13 11:31:52)
prolite avatarwell ebay claimed to be secure and still got Hacked and sacked maybe's there hope for them yet .

posted by (2014-06-13 21:45:54)
No avatarI have a friend that does this, and I helped him with some technical stuff once and learned a few things about it. What eBay is claiming is that it didn't work very well for *them*. They if people were going to go to eBay, they were going there anyway. But I can tell you two things: Paid Search totally works. I am fine if people want to drop out of the market because it makes it that much cheaper for other companies to dominate the listings. Also, I always hear the fear that bidding on Brand will cannibalize organic search traffic. I get the fear, and the truth is that there is usually a slight dip in organic click-through when branded paid search is running, but the net effect is that you capture much more than either segment, than if you were just running organic.

If paid search didn't work, people wouldn't be doing it. It's that simple. You might be able to convince people to go with a "new fad" for a while, but when the bottom line is showing that these ads aren't producing any conversions, people would stop doing it. But that's not what happens. A well run PPC campaign produces a TON of money, and there are a lot of companies survive on it. I wish other markets would open up so that Google didn't have such a monopoly, but Bing and others just aren't there yet. (And Bing copies google almost exactly..)

posted by (2014-06-14 03:24:35)
No avatarwenex,

That isn't quite what they are saying. They are saying that the keyword being searched will often have a non-paid hit very close to the top of the search results, and people click on that instead. If I search for a company name or brand, I'll often get two paid options leading to their website (or to their competitor), along with regular returned results that have the company page, with additional links directly to popular pages (ie, Support, Downloads, Blog, etc).

So if you are searching for ebay, 99.999% of the time, ebay.com is going to be the very first result below the paid ones. So there is very little to gain by paying Google to show that ad to me, because of the fact that I am going to click on the 'free' result despite a paid ad being in front of me.

I am one of those persons will click the free result instead of the paid result whenever possible.

But if the keyword is not a well known brand, but a topic or concept (like "memory"), then that is still effective. It's better to save your advertising dollars on new areas of business where you need to build up your brand, rather than using it on an already established brand (ie, Walmart should not be buying ads for keyword search "walmart".)

posted by (2014-06-19 08:41:34)
CyberLover007 avatarseems, they would find another way to promote.

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