Why do ranking sites pay for adwords? SEO question
 

I just don't get it. 2 sites ranking at #2 and #5 respectively, for a 30K+ search phrase per day according to WordTracker, why would these 2 sites bother with a stupid google pocket lining ad as well? They've been in those ranking places for months.

Despite what google say, they must get a boost from google in rankings due to all the money they shell out, or some secondary benefit. I'm not paying for adwords EVER but it would be interesting if anyone had the inside scoop.

Branding. They don´t do it for the hits, just the branding.
Besides , they are still not number 1.

I do it too. I have a #2 spot for a very important and relevant keyword for my site, but I also buy the #1 ad-spot for it. I get more hits from the bought spot than the 'free' listing. I don't want to give that to my competition.

Many companies use adwords for their own name and misspells, though most of the time they are already #1 but as kektex mentioned branding is a major reason why they do so.

:uhoh :eek7

Hehe yeah I know , now that I think of it that came out wrong.
The traffic counts too, but branding plays a very important part for some companies.
You want to associate your name with certain markets and adwords is a good way.
At least that's one of the reasons in mainstream marketing...

dunno man

more traffic :) if they are not clicking your free listing they are clickin your paid ad :)

Ever think that maybe the Adwords ad is paid for by an affiliate?

Who knows, Google can reconfigure their algorithm, do who knows what, and you can drop off the list. AdWords are more reliable.

I have learnt that maintaining a Google AdWords campaign can result in better rankings.

^^^^
that's not true at all.

Yup, exactly. If the paid spot is making money also, why not?