Google statisticians recently ran over 400 studies on paused accounts to answer the question that Advertisers often asking, whether search ads cannibalize their organic traffic? In other words, if search ads were paused, would clicks on organic results increase, and make up for the loss in paid traffic?
In the study called "Search Ads Pause Studies", a group of researchers observed organic click volume in the absence of search ads. "Then they built a statistical model to predict the click volume for given levels of ad spend using spend and organic impression volume as predictors. These models generated estimates for the incremental clicks attributable to search ads (IAC), or in other words, the percentage of paid clicks that are not made up for by organic clicks when search ads are paused," informs David Chan and Lizzy Van Alstine, Quantitative Management Team, Google Research blog.
Chan and Alstine says that the "results were surprising. On average, the incremental ad clicks percentage across verticals is 89%. This means that a full 89% of the traffic generated by search ads is not replaced by organic clicks when ads are paused. This number was consistently high across verticals."
The full study is embedded below for "online reading" and for ofline version, you can download it using the link under:
Update: Video added
Download the full study here (pdf).
[Source: Research Blog]