Click cannibalization is a constant concern of companies who rank high in organic search. Does it make sense for a company that ranks high in organic SEO to run a pay-per-click (PPC) campaign and or an online marketing campaign?
This video answers this question by showing how a company with a high PageRank through organic search can combine their high organic SEO position with an aggressive PPC campaign.
The process involves defining the current number of clicks generated through organic search. Next, the company determines its click-through-rate (CTR) at its website and uses it to determine their conversion rate on website visits. Their revenue is simply the number of conversions multiplied by the sale per unit sold.
Afterwards, the company combines it organic SEO with a PPC campaign. It defines the number of clicks through organic search and then the number of clicks through paid search. The company then totals up the organic and paid search clicks which is then multiplied by the conversion rate. This is then multiplied by the sales per unit to define the revenue.
The company then takes its cost per click for paid search multiplied by the number of clicks resulting from the PPC campaign. They take their revenue from organic and paid search minus their revenue from the previous month. The cost for paid search is then deducted from this amount to determine the true benefit of PPC and organic seo.