Paid search engine ads drive not only online sales, but in-store sales as well, according to a recent study by marketing analytics platform RevTrax.
The study covered millions of transactions conducted over a 2 year period across hundreds of merchant outlets, focusing on purchases generated from paid search ads. When a paid search ad was showed to a consumer, it led to a printable or mobile landing page with a unique code in a coupon. To redeem the coupon, the consumer had to go to a physical store.
- Approximately 9% of ad clicks generated an in-store sale
- For every $1 generated online, retailers recorded about $6 in-store purchases
- On average, a click on a paid search ad generated $15 of in -store revenue, with some generating up to $28 of in-store revenue
- The average cost per sale varied between the 7 and 10% range, with some as low as 1%
- Around 40% to 50% of customers acquired from paid search ads were new customers
RevTrax noted that this study included only large retailers with multiple physical stores. However, it might be worthwhile for small retailers to do an experiment like this to see its effectiveness. In using paid search ads to distribute coupons that can only be redeemed at a physical store, bricks-and-mortar retailers have a unique opportunity to gain back some ground from online retailers who usually have the edge with prices due to lower operating costs.