Using combined forces, Google and Compete have measured the role and effectiveness of web search engines in sales business. Study shows that 7 out of 8 tested categories are paid clicks (AdWords ads) with 50% better cost-effectiveness from the organic ones.
Why is that so? In fact, the answer is obvious — paid campaign can be strictly directed to keywords that bring you quality traffic, while organic searches are left to the mercy of search algorithms.
Interesting view on this topic from Brad Geddes, pay per click expert:
“Many consumers know they are ads. Often we click on natural when we’re surfing/researching, and ads when we’re more in the mood for buying or researching a future purchase.”