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Company Paused $113K Paid Search, Recaptured 65% Revenue

Company Paused $113K Paid Search, Recaptured 65% Revenue

A company paused its branded paid search campaigns across the United States, United Kingdom, Australia, and Canada, subsequently halting most non-brand paid search efforts as well. This experiment aimed to determine how much of the paid search budget was acquiring new customers versus defending clicks that organic listings were already positioned to win. Before the pause, the company was spending an average of $113,000 per month on branded search, non-brand search, Shopping, and Performance Max campaigns. Thirteen weeks after pausing paid search, the analysis revealed that 65% of the revenue previously attributed to paid search had been recaptured through organic and direct traffic. Further investigation indicated that nearly nine out of ten dollars spent on the branded campaign were essentially defending against clicks that organic search was already capable of capturing. This finding suggests a significant portion of the paid search expenditure was not driving incremental customer acquisition but rather reinforcing existing organic visibility. The experiment was initiated to answer the fundamental question: was the company spending $113,000 monthly to acquire new customers or to essentially buy back clicks that organic search was already earning? The results challenge the perpetual reliance on paid search, often maintained due to a "what if" mentality regarding potential loss of traffic and revenue. The fear of traffic going "rogue" and revenue declining sharply, often termed a "performance marketer's nightmare," typically keeps paid search active indefinitely. This experiment provided concrete data to assess the true value and necessity of such ongoing expenditure. The branded search campaigns, once paused, were not reinstated, indicating a strategic shift based on the experiment's outcomes. The study highlights the potential for organic search to capture a substantial share of branded queries, especially when the brand already possesses strong organic positioning. The analysis also noted that the majority of the branded campaign's expenditure was defending against clicks that organic was already winning, implying an inefficient allocation of resources. This situation is common, where paid search acts as a defensive measure rather than a primary growth engine, especially for established brands with robust organic visibility. The experiment's duration of thirteen weeks allowed for a comprehensive assessment of the impact of pausing paid search on revenue and traffic patterns, providing a clear picture of the organic and direct channels' ability to absorb the paused spend.

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