Is Pay Per Click Losing Punch?

Are paid search listings declining as a traffic driver? Hitwise analyst Heather Hopkins found that in the month before May 9, 2009, only 7.25% of traffic leaving search engines for any Web site came from pay-per-click ads. That’s about a 26% falloff from the 9.8% share that took the same trip a year before. n A custom portfolio of 500 retailer sites experienced a 20% drop in visitors clicking through search ads. n Hopkins suggests marketers may be cutting back on their pay-per-click campaigns in the recession. Other observers suggest that both marketers and consumers may be relying more on organic search than paid listings.

Source: Hitwise