Testing bid changes for RAJA to ensure paid and organic search weren’t cannibalising one another

The Objectives

We were challenged with finding out what effect increasing search terms’ paid average position would have on:

  • Organic engagement and visibility
  • Combined paid and organic engagement and click through rate (CTR)
  • Last click and data-driven revenue and conversion rate (CVR)

The Strategy

  • We targeted positions one-three and three-six on alternating weeks over the course of six weeks to capture data and then analyse it using weighted regression/correlation analysis against an array of factors:
    • Organic CTR
    • Combined organic and paid CTR
    • Conversion rate
    • Revenue
    • Average order value
  • We then ran the same analysis again, incorporating a full six months’ worth of historic (pre-test period) data. Alongside these analyses, we also took into account revenue data from multiple attribution models and compared them with the same metrics from other non-brand activity

The Results

  • Data indicated fewer incremental clicks from additional spend when considering organic metrics compared to paid only
  • We estimated that maintaining an average paid position of 1.5 would have driven 175% more clicks through paid ads but overall SERP traffic would have only increased 95%. These diminishing returns from cross-channel cannibalisation were higher than those found when running same analysis across non-brand areas
  • At position 3-6 we found:
    • 60% CVR increase
    • 15% basket page visit rate increase
    • 42% higher AOV
    • A 75% spend reduction, with only 27% revenue reduction