New Study Proves True In-Store Value of Online Clicks

Every dollar of e-commerce revenue from paid search correlates to another $6 of in-store revenue

Paid search ads have long been a workhorse for companies that want to target prospective customers with relevant marketing messages to increase their online sales. But does a search marketing campaign also drive offline sales? A new study says that the answer is a resounding “Yes.”
RevTrax, a firm that helps multi-channel merchants track the effectiveness of digital media on offline transactions, conducted an intensive study into the effect of online ads on offline sales. Conducted between August 2009 and August 2011, the RevTrax study, used the following process to take an accurate pulse of consumer behavior:

• A paid search advertisement was displayed to a consumer.
• The paid search ad led the consumer to a printable or mobile landing page displaying a coupon with a unique barcode.
• The consumer redeemed the coupon inside a brick-and-mortar store.

Then, by tracking each coupon’s unique barcode or promo code, in-store sales were tracked back to the search activity that drove the engagement. Amazing offline sales lift from paid search ads
The results of the research were nothing short of astounding. For every $1 of ecommerce revenue generated from paid search, participating merchants realized another $6 of in-store revenue. If you turn this stat on its head, it also means that if multi-channel merchants do not factor in-store sales into their search marketing ROI calculations, they may be undervaluing the value of paid search by as much as 85%.
The research also revealed that for merchants with an average transaction size of 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.
• Some merchants saw a cost-of-sale as low as 1%

Search marketing is also a very valuable customer acquisition tool: Participating merchants reported that between 40 and 50 percent of their customers acquired via paid search were brand-new shoppers. This groundbreaking research demonstrates a tremendous opportunity for consumer packaged goods, restaurant and retail marketers. By using digital media, especially paid search, these businesses can drive a significant volume of consumers into their brick-and-mortar stores.
If you’re an offline business that’s ready to get a lot more customers walking through your doors using paid search ads on Yahoo! and Bing or Google please visit Adtrader.