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37161 Google Adwords uplift study

es6.mike@gmail.com
Murray Stokely and Steve Scott for their help with implementing the Bayesian estimation method
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 105-105 | Added on Saturday, 17 August 13 11:48:36
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Our analysis does not include an estimate for incremental conversions. Other factors such as the ranking of the organic search result or the strength of brand awareness of the search term could influence the IAC estimate. Being able to track these factors for each study will allow us to better understand their influence on the IAC estimate.
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 100-103 | Added on Saturday, 17 August 13 11:48:22
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A more rigorous approach to determining IAC would be to conduct a randomized experiment. A test group would be exposed to the pull back in paid search ads while search spend would be held constant in a control group. A comparison of the paid and organic click volumes in the two groups would then yield an IAC estimate. However, many advertisers are adverse to conducting such experiments due to the setup costs involved and the potential revenue impact from having a hold-out group. In the case of spend pauses, advertisers presumably believe the benefit of pausing their spend outweighs lost revenue.
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 96-100 | Added on Saturday, 17 August 13 11:47:57
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As noted earlier, a low IAC value does not necessarily suggest a pause in search advertising is in order. In fact, for many advertisers with a low IAC, it is still profitable to invest in search advertising. To evaluate the economic benefits of search advertising, an advertiser must run a calculation incorporating their individual IAC, conversion rates, and conversion revenue. The below equation can help determine whether search advertising is worthwhile on a case by case basis.
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 80-83 | Added on Saturday, 17 August 13 11:47:22
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We now consider IAC statistics by country, industry vertical and daily spend level. Table 2 includes both the mean and median IAC for each country.
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 69-70 | Added on Saturday, 17 August 13 11:46:54
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Figure 1 is a histogram plot of the IAC across all 446 studies. The average IAC across all studies is 91%, with the median rate at 95%. The average IAC weighted by the volume of paid clicks in each study is 89%. More than 64% of the studies had an IAC value greater 90 with only a few studies showing a low IAC value.
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 52-54 | Added on Saturday, 17 August 13 11:45:59
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An advertiser spends $1,000 a month and receives 400 organic and 300 paid clicks a month. the validation flags are included in this metaanalysis. (B) Subsequently, they cut their ad spend to $0 and find there are 500 organic clicks a month and 0 paid clicks a month. Under (A), there are 200 incremental clicks, thereby giving an IAC of (700-500)/(300-0) = 66.7%.
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 23-25 | Added on Saturday, 17 August 13 11:01:44
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IAC represents the percentage of paid clicks that are not made up for by organic clicks when ads are paused. Conversely, when the campaign is restarted, the IAC represents the fraction of paid clicks that are incremental.
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 20-21 | Added on Saturday, 17 August 13 11:00:18
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To make comparison across multiple studies easier, we express the incremental clicks as a percentage of the change in paid clicks. This metric is labeled ?Incremental Ad Clicks?, or ?IAC? for short.
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 18-20 | Added on Saturday, 17 August 13 10:59:47
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Indirect navigation to the advertiser site is not considered.
37161 Google Adwords uplift study - es6.mike@gmail.com - Your Highlight Location 17-17 | Added on Saturday, 17 August 13 10:59:25
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