Does PLA hurt my organic google search.
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I have experienced a big drop in my organic trafic to my site. But an increase in my cpc...? Does google punish my site for PLA to get higher revenue?
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No, the two systems operate separately. I would let this ride out a bit longer before you jump to too many conclusions. There are many variables that could have influenced this situation such as new competitors entering the PLA's, a slight algo update wasn't in favor of your site, or seasonality depending on what you are selling. A mix of good organic rankings and PLA's/PPC usually has a 1+1=3 effect because you have more "real estate" on the web, hopefully on the first page.
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Would be not very interesting for Google to see people stop ads because of an organic penalty :). This is his core business.
Most of time, the opposite question is asked : "does Participating In Google AdWords Help My Organic Rankings?"
No, of course : http://www.seroundtable.com/google-adwords-organic-results-15910.html
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No it has no affect.
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