Cost-Efficient Traffic for Luxury Shoe E-Commerce : a Google Analytics & Google Ads Data Analysis of Organic vs. Paid Performance in the American Market

Abstract

This bachelor’s thesis compares the effectiveness of organic and paid search traffic in customer acquisition for a new luxury footwear e-commerce platform in the US market. The study examines cost-efficiency, engagement patterns, and conversion performance for each of the channels, including differences across device types and geographic regions, guided by four primary research questions. The theoretical foundation uses the AIDA (Attention, Interest, Desire, Action) model to interpret how each traffic source influences the luxury consumer journey. A quantitative approach utilized a full year of Google Analytics and Google Ads data, supplemented by quantitative survey data (n=32) from past buyers. Key findings reveal paid search performs well at driving immediate Attention and Action (traffic and conversions), particularly during peak periods, but produces lower average order values. On the other hand, organic search generates fewer conversions but delivers significantly higher-value purchases and deeper engagement, indicating its strength in fostering Interest, brand trust (Desire), and long-term relationships with the brand. The study highlights a synergy in interaction between the channels, suggesting paid advertising boosts organic visibility over time. Desktop users and wealthy states showed higher conversion efficiency. Survey responses emphasized brand reputation, product information, and user experience. These results offer practical insights for luxury platforms balancing short-term acquisition with long-term consumer equity. Recommendations include channel-specific AIDA-based strategies, optimized seasonal spend, enhanced SEO/content, and adopting multi-touch attribution. The findings set foundational work for future research on LTV, cross-channel attribution, and international luxury behavior.