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Local Market Data

I was pretty interested in this thread simply because direct traffic in Google Analytics isn't necessarily direct traffic. It refers to any visit that failed to pass a referral string. This could be heavily influenced if you:

1. Forget to filter out your own I.P.

Good call. I didn't even know I could do this. Just set up the filter. That'll be fun to see how that changes things.
 
I don't have much data to provide for you (and the data I have is primarily Canadian), but it's definitely a very interesting discussion to have. We are doing some experiments with different stores and trying to use both basic metrics (foot traffic and digital leads) as well as advanced metrics (analyzing how every number on the website has changed).

I will give some numbers unrelated to the original topic, but related to PPC vs Organic for a single store (middle of the range - not our best organic or paid performer at this time)

Paid Traffic
2,654 sessions
1,949 unique users
50.87% bounce rate
4.17 pages per session
2:10 average time on site
29.54% of site goals being completed


Organic Traffic
4,587 sessions
2,788 unique users
17.31% bounce rate
6.78 pages per session
4:35 average time on site
51.94% of site goals being completed


If I take this data for what it is, I can calculate much more in-depth Cost Per Click and Cost Per Lead on the paid traffic side.
I can even run numbers that show that paid traffic visits contact-related pages about 30% as often as organic traffic.

My point is that the value of my paid traffic (virtually across the board) is far less than my organic. I could probably afford to shut off my CPC and not lose *that many* sales. Am I willing to take the risk? Hard to say - we're going to do it with one store for a month and see if we see any changes in the "real world" but it's a hard thing to track in a short period of time.
 
craig,

For some interesting insights in SEM performance, consider putting all SEM traffic into 2 classes, White pages and Yellow pages.

White Pages = They Know Your Name.
Yellow Pages = They're not looking for you, but looking for what you're selling.


White page PPC's are dirt cheap, are super easy to rank well (PPC or SEO) and often end with a quick site visit and a phone call.

Yellow Page PPCs are far more expensive and very difficult to rank for.


The challenge of scoring your PPC vs SEO performance is far more important in the Yellow Pages style of visits. Mixing White Pages performance data in with the Yellow Pages data creates skewed results that may lead to poor assumptions and these assumptions are the building blocks of bad decisions.

Lots of posts on this topic like:
http://forum.dealerrefresh.com/f43/...oogle-ppc-vs-news-website-2656.html#post23672
 
I already run reports with that data, just under different labels.
Many of our stores no longer pay for what you call "white page" - if the search is specific enough Google already gives us the real estate and if not we rank exceptionally well organically in this area.

Almost all the reports I run exclude all "white page" results in order to ensure my organic results are real.
All our substantial increases are on geographical or industry terms that they previously didn't rank well for.
Believe me when I say I don't make assumptions based on Analytics - I've been studying Google Analytics reports and working with their tools and dashboard for over 6 years now on a weekly, if not daily basis. My combination of Webmaster Tools, Analytics, Chartbeat, In-house Analytics and AdWords Analytics provides very good data sets that show not only how users get to the site, but which sources result in the best clickpaths, which sources yield the highest number of goals, which organic keywords lead to the contact page most often, which organic keywords land users on inventory pages vs. the homepage and many other key data sets. We build off of what works for each site and continue to make improvements that are specific to that website's own key performance indicators.

Long story short - "Yellow Pages" has been my grind for the past 4 years and will always be my primary focus.
We've found numerous ways to work in this area that have been far more effective than I ever expected, but we also see significant growth on the "White Pages" side that has a very strong correlation, even when removing returning visitors.