Search Engine Marketing generates BIG returns for Offline Retail

Annual US retail spending is roughly $4 trillion according to the US Commerce Department. And while e-commerce is growing very rapidly, it remains less than 5 percent of total retail sales. Historically, most search marketers have focused almost exclusively on e-commerce sales. But a new study finds that the real impact of paid search is offline.


Six-to-One Impact in Offline Stores

Based on two years of research conducted by retail marketing firm RevTrax, the study discovered that “for every $1 of e-commerce revenue generated from paid search, marketers can expect to see approximately another $6 of in-store revenue.”

Average Paid Click Worth $15 in Store
Using this methodology, RevTrax could conclusively determine in-store sales affected by paid search ads. Here’s how RevTrax’s findings illuminated the “value of a click” (where the average transaction size was under $200):

• The average click on a paid search ad generated approximately $15 of in-store revenue, with some merchants seeing as much as $28 of in-store revenue.
• Approximately 9% of clicks on a paid search ad generated an in-store sale, with some merchants seeing up to 26% of clicks on a paid search ad generating an in-store sale.

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