How Google Beat Wall Street Expectations on Q2 2012 Earnings

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New WordStream study illustrates how bigger and better Google ads generate more clicks and revenue in latest quarter

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With increasingly prominent and engaging Google ad formats taking up more and more of the Google search result pages, it comes as no surprise that the company announced a strong quarter that beat Wall Street expectations.

With increasingly prominent and engaging Google ad formats taking up more and more of the Google search result pages, it comes as no surprise that the company announced a strong quarter that beat Wall Street expectations.

A new study conducted by WordStream, Inc., a leading provider of search engine marketing software for small and medium-sized businesses, shows that the click-through rate (CTR) of paid search advertisements on Google now outnumbers clicks on “free” organic search result listings by nearly a 2:1 ratio for high commercial intent keyword searches conducted in the U.S.

The full results of the new study on Google ads are published in infographic form.

How High Commercial Intent Keyword Searches Are Worth More to Businesses

In search engine marketing, different types of keyword searches have different value to businesses. For example, high commercial intent keywords (such as “Buy Leather Wallet”) and branded keyword searches (such as “Canon EOS Rebel T3”) are worth much more to businesses than pure informational keyword searches (such as “who is the 26th president?”). While unpaid organic clicks still account for the majority of clicks for Google searches, the new study from WordStream is the first to illustrate that for the types keywords that are most valuable to businesses in the US, pay-per-click (PPC) advertisements account for the bulk of clicks by nearly a 2:1 ratio.

How More Refined Google Advertising Tactics Are Driving Revenue Growth

New bigger, more engaging and more targeted sponsored ad formats that allow companies to more precisely specific prospective clients are behind the increases in CTR for high commercial intent keyword searches. For example:

  •          Click to Call Ads: This powerful mobile ad programming allows customers call a business phone number with the click of a button.
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  •     Bottom of Page Ads: Catch their attention before they move onto page 2 or refine their search.
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  •     Mega Site Links: This massive ad format offers up to 10 additional places to click, greatly increasing your chances of presenting a relevant link.
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  •     Social Ad Extensions: Show who has +1'd your site, providing credibility and potential name recognition.
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  •     Remarketing: Allows companies to track site visitors with a cookie and chase them around the Web, displaying applicable banner ads until they click and convert.
  •     
  •     Map/Location Ad Extensions: Display your address and phone number to local searchers, enticing them to visit you quicker. Advertise only to customers in the vicinity.
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  •     Chat Ads: Prompt clickers to open a conversation bar with a sales guy – get those leads while they're hot!
  •     
  •     Email Ads: Prompt users to provide an email address directly from the search result page.

Click here to view the complete report: http://www.wordstream.com/blog/ws/2012/07/17/google-advertising
About WordStream, Inc.

WordStream Inc. is a provider of powerful AdWords management PPC software for small to mid-sized businesses. WordStream won the 2012 MITX Innovation Award for Best Customer Engagement Driver for its AdWords Performance Grader, which shows businesses how they stack up against other PPC marketers in similar spend brackets. By leveraging data aggregated from our proprietary database, the tool presents exclusive insights to users. Whether you’re a novice in the world of Google PPC, or a PPC expert, we have tools and software solutions for your needs.

Press Contact:
Laura Taylor
617-849-6124
VP of Acquisition
ltaylor(at)wordstream(dot)com

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Laura Taylor, VP of Acquisition
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