Marketing researchers have found the conventional method of measuring the return on investment of online search ads is limited.
They have developed a new empirical method that estimates the lifetime value of customers acquired from search advertising by using multiple data sources.
Using this new method, the study suggests that although the average cost per click using Google search advertising is 80 cents, the average return is around $10 per click for each keyword.
The study concludes that the conventional method has heavily undervalued the return on investment in online search advertising.
Read more at Washington University, St. Louis