New Marketing Report: Organic Search Is More Valuable Than Other Channels

Terakeet released findings from its latest study, which examined the value of organic search as a revenue and insights driver. The report compares the impact of organic search to other marketing channels, with a focus on paid search.

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Terakeet’s report reveals that despite low average investment, organic search can deliver customers at 87.4% lower cost than paid search, on average. Additionally, it found that the audience insights and transparent data driven by the organic search channel far exceeded those available from other marketing channels, such as digital advertising, PR, and email marketing.

The report, The Compounding Value of Organic Search Report, compares organic search with two primary categories of channels: paid search and other, which includes: TV, print, and radio advertising; partner and affiliate marketing; events; digital ads; and email marketing.

Terakeet cited changing consumer behavior and sentiment as chief reasons why organic search outperforms other channels, as well as the availability of conversion data and consumer insights.

“Consumers have been moving more and more online over the past ten years, which was only accelerated by the pandemic,” says Terakeet Director of Marketing RJ Licata. “This increased audience, paired with the growing lack of transparency, banner blindness, and general distrust in online advertising, has helped organic search become a significant business opportunity for brands looking to reach customers, build trusting relationships, and drive conversions.”

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The report also reveals that other channels are being outperformed by organic search because:

  • Nearly one third of the money spent on online advertisements is lost to fraud.
  • Non-organic search channels offer minimal or inaccurate audience targeting and conversion tracking.
  • Many companies allocate a significantly larger percentage of their marketing budget to paid media over organic search.
  • 93% of all online traffic originates from search engines.
  • Organic search is the only channel that accrues value over time.

Licata added: “Marketing budgets are continuing to shrink, so it’s imperative that brands are using their budgets on the most impactful channels. Organic search is the only channel that accrues value over time. If marketers want to drive conversions and revenue at a lower cost, it is critical that they invest in organic search strategies.”

Terakeet determined the average customer acquisition cost difference between organic and paid search by comparing the channel cost and conversion percentage of both channels for its current customers.

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