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Does Paid Search activity benefit my organic rankings?

We need to be a little careful here in interpreting the question:

  1. If you mean, "Does running a Paid Search campaign in tandem with my Natural Search activity create more value than running either separately?", the answer is 'yes'. A nice iCrossing study of March 2007 demonstrated a synergistic effect between simultaneously operated Natural and Paid Search activity. Quick summary: Clicks up 92%, Actions and Orders up 45%, Page Views and Visitors up 44% and 41% respectively, and Dwell Time (Time on Site) up 39%.)
  2. If you mean, "Does running a Paid Search campaign nudge my organic rankings up?", the answer is most definitely 'no'.