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BizReport : Search Marketing : August 30, 2011

Mathematical formula developed to predict PPC performance

Digital marketing technology DC Storm, with the help of mathematicians from Sussex University in the UK, has confirmed that search ranking positions impact on click-through rates and developed a formula that will help advertisers predict the outcome of optimization changes.

by Helen Leggatt

dcstorm-black-orange-profile.jpgFocusing on the travel sector, the research analyzed the bid, position, click-through rate, cost-per-click and conversion rate.

"Alongside the University of Sussex Mathematics specialists, we set out to really understand the relationship between all the variables of PPC, so we could help advertisers to more intelligently optimize their rankings," explained Seth Richardson, CEO of digital marketing specialist agency DC Storm.

The findings confirm that search ranking position has an effect on click-through rates and results have enabled the team to develop a mathematical model that gives advertisers the ability to predict results from any changes they intend make in their optimization activity.

"The study allowed the team to develop a very valuable equation which advertisers will be able to apply to their PPC activity, giving them the ability to make informed decisions on whether it's worth investing more to increase their rankings, or on the flip side, to what extent a decrease in expenditure will impact volumes," said Richardson.

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Tags: click-through rates, PPC, search engine optimization, search ranking, SEO

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  • DCStorm_Neil

    Google continually refines it's algorithm so it does constantly change but our model produces a formula at a given point in time using current data (for a specific client or subset of a client's data) so it will evolve with Google's algorithm. Feel free to get in touch if you'd like to learn more about our project.

  • Shreyas

    There is a formula, true! But Google keeps on updating its search algorithm frequently. So there is no point in actual defining a particular mathematical rule because of the dynamic nature of the search results. Don't you think?



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