In a thread over at Cre8asite Forums named Organic vs Paid traffic ROI?, there is a discussion going on about the different conversion rates and ROI seen between the pay per click traffic (paid traffic) and organic traffic (free traffic). I have personally heard at conferences that people are more likely to click on organic results over paid results. However, I do not remember hearing the differences in terms of conversions or ROI when it comes to paid versus free search.
In the thread, one member says:
I use PPC for one site which also comes top for the same keywords.One great thing about PPC ads is you can turn them on and off, and experiment. At first I thought by having an ad show for a word we are number for was just throwing money away, so i turned the ads off, profits dropped, turn them back on profits increase, repeated just to make sure.
Results could suggest a few things, 1. Our ad text appeals more to some people more than the description/title in the serps � can�t please everyone. 2. Some people will click on the ads first, so its either us or a competitor.
No major difference in conversions, if anything the PPC converts better as i make sure the ad is very relevant. Have tried several niches with PPC and lost money, PPC is not always the answer, a lot can depend on the product/service. One thing i would recommend is to continue to use PPC for as long as it makes a profit and don�t stop just because you come top in the serps(test this, each site may be different)
This can make for a very educational thread.