Restoration Hardware Questions the Value of PPC Media

Here is an interesting article on the value of paid search and digital media in general. Apparently, Restoration Hardware uncovered (after some probing questions from the CEO) that their brand terms were driving 98% of the site traffic and that a lot of money was being wasted on paid search. Obviously, we need more information on their search campaigns to understand the root cause of this but it does point out that many companies are not using their resources and media budgets wisely. Many companies have recently cut their digital media budgets and did not see a corresponding drop in sales, P&G most notably. Google, Facebook, Amazon, and others are currently looking at how to address this and let’s see if they can stem the tide.

Here is a link to the Econsultancy article with more details.

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