The importance and value of natural referencing

What is the same importance and value of being first on Google search results organic? Today most companies' budgets are allocated for referencing in buying keywords, ie in advertisements or commercial links as Google Adwords. Efficiency is certainly easier to measure than for an investment in the natural referencing an Internet site. However users with greater confidence in the organic search results, it seems appropriate for a company to invest not only in developing its presence and visibility on the web, but particularly in its natural referencing.
Calculating ROI (*):
Let us in the case of a commercial site where the profits generated by the conversion of part of inbound traffic will be known; ROI (*) or return on investment can be calculated as follows:
ROI = [(N x TC / 100 x P) - D] / D
where:

• N = number of clicks falling (on organic search results or paid advertisements)
• TC = average conversion rate%
• P = Profit or average profit achieved by conversion
• D = total expenditure incurred to acquire the incoming traffic or clicks

Take an example in the classic case of a traffic purchased (PPC (*)) from Adwords:

N = 1000 Adwords clicks on ads at an average cost of 0.20 $ (for example)

TC = 10% (This is a conversion rate relatively high and therefore a site where the optimization of landing pages is successful.)

P = 3 $ a conversion (for example, following the sale of a product or service)

D = 1000 × 0.2 $ = 200 (cost of this campaign Adwords)

resulting in an ROI = [1000 × 10/100 × 3-200] / 200 = 0.5 = 50%

Note: You can also use the calculator ROI online at Yahoo.

Without buying advertisements, ie not considering that traffic organic engine, you can replace N by the number of visitors clicking on the site located on the SERP (*) and D investment or expenditure incurred to reach these positions.

Domination of Google:

In France 90% of internet searches made via the engines are on Google. The positioning on this search engine is therefore crucial to help a site to take off. In contrast loss of significant positions on Google can reduce very substantially the number of visitors and therefore conversions on a site that would not have succeeded in diversifying its sources of traffic. For the sake of efficiency can therefore focus its measures and analyses on Google only.

Giving a value to a position on the SERP (*) depending on the application and associated keyword:

When a position is reached and relatively stable, one can quite easily know the value of traffic generated by the key word (number of visitors from the application and associated conversion) and more calculate the increase in value for a better position on this key word.

On a site whose listing is in place or using the PPC (*), analysis tools like Google Analytics or Xiti will give us the number of visitors to a landing page of the site where you can measure a rate conversion. A better position will increase traffic and therefore value based on the increasing number of targeted visitors multiplied by the conversion rate and profit by it.

THE traffic estimator Google Adwords gives an estimate of the number of clicks an ad in the first position and for 85% of relevant queries. It is estimated organic traffic for the site in the first position on Google up to 4 to 7 times the number of clicks indicated by this tool for predicting traffic of Google although this depends also:

1. The appearance more or less commercial keyword .
2. The number of commercial ads positioned above the organic results .
3. The intent of the initiator of the petition .

To get an idea of the value of a higher position, take the example of a small shop e-commerce which is to reach the top position on Google for a keyword little competitive traffic increase of 100 visitors per day.

With a conversion rate of 10% and a profit by converting 50 $, gains associated with this position would be the first $ 500 more per day. Suffice it to extrapolate to get an idea of the value of a positioning for a larger project and would be well positioned on multiple keywords with high attendance!

Distribution of clicks:

We saw in the article: Distribution of clicks on search results that a vast majority of Internet users do not go beyond the first page of results, as the famous golden triangle ie 3 top positions has the highest proportion of clicks, with nearly 4 times more clicks on the first position in relation to the second.

Also according to a study by iProspect in 2004, search results organic monopolize the most traffic: 72% on Google, compared to 28% for advertising or commercial links. A research conducted recently at Penn State, showing that 80% of searches on the Internet are linked to research information, against only 10% to find a mark, a site or a specific address and another 10% for purchases Explains this result.

In general a good position naturally gives confidence to users, so it is a good way to gain some legitimacy for a little known brand. The conversion although relatively close will be higher for organic traffic in the case of B2C (*).

Factors that could alter this arrangement:

Among the most important factors are:

1. But the request (eg research information or intend to purchase).
2. Presence of a brand known (difficult to compete with the official website of the mark).
3. Number of commercial links at the top of SERP (*), the latter shifting the organic results down.
4. Presence of sitelinks (*), sub-domains, and multiple listings (eg clustering *)
5. Suggestions Google searches
6. And again: universal search, seasonal (eg holidays), level of competition, location, purpose community, and so on.