The lifetime value of a search

Here’s a quote to remember from Search Engine Watch’s Danny Sullivan, in response to a head-scratching article by web usability guru Jakob Nielsen:

Search advertising has long been undervalued. People still pay less than a dollar for some paid search ads and they obtain clients that will be with them for life. But few advertisers are calculating the lifetime value of search…If you don’t factor that lifetime value, then you fail to understand how much you really can afford to pay.

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