Search Wins: The Relative Value of Internet Marketing Vehicles

SEATTLE, WA — 09/18/2007.

Portent Interactive has completed a year-long research project comparing the value generated by several Internet marketing vehicles: ‘Organic’, or unpaid search, pay-per-click marketing, email, banner ads and several other sources.

The result is displayed in a diagram here.

The chart was designed to track the relative conversion rate of major marketing vehicles. According to Ian Lurie, CEO of the Internet marketing firm Portent Interactive, conversions are the goal of every website. "A conversion could be a sale, a vote, a subscriber, or however a client defines success," Lurie said, "Though the individual goals vary, conversions are the livelihood of a website."

Lurie created the chart after realizing the shortage of clear data on conversion rates available. This lack of analyses was making it difficult for clients to make informed decisions about how to allocate spending and resources, Lurie noted.

"Currently," Lurie said, "clients are faced with the tough choice of whether to divide their resources up between subscriber newsletters and blogging, or putting all their money into paid search. It’s basically a gamble."

Thus, Lurie completed a one-year study based on ten websites (seven e-commerce and three non e-commerce) to find out exactly what marketing mediums offer the desired sweet spot of quick, high conversion rates.

According to the study, the best formula for a good conversion rate is combined paid and organic search. Direct traffic was the next single highest source. Finally, the chart showed that email house list offered both the fastest and lowest conversion rate.

"Basically," said Stacy Conner, Portent Senior Marketing Strategist, “this study shows how crucial search is to the success of an Internet marketing campaign. Top rankings for popular terms on Google or Yahoo, supplemented by a smart PPC campaign, ensure a stronger conversion rate than competitors who ignore this vehicle’s importance."