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Monday, August 24, 2009

Google Research Concludes Conversion Not Effected By Ad Position

Posted by @ 10:08 pm

gadwordsEver wondered if the position of your ad on the Google search results page effects your conversion? Well, logically you would think that the higher your ad is positioned in the SERP’s then the more clicks you are likely to receive, resulting in a higher conversion.

But apparently this isn’t the case…

Google’s Chief Economist, Hal Varian and his team have studied the AdWords data and have concluded that overall the conversion rate does not vary all that much based on the ad position. Here is Hal’s conclusion:

We have used a statistical model to account for these effects and found that, on average, there is very little variation in conversion rates by position for the same ad.

For example, for pages where 11 ads are shown the conversion rate varies by less than 5% across positions. In other words, an ad that had a 1.0% conversion rate in the best position, would have about a 0.95% conversion rate in the worst position, on average. Ads above the search results have a conversion rate within ±2% of right-hand side positions.

Hal explains more about their research on the Inside AdWords blog here.

So what does that mean? It highlights the importance of getting your ad copy right. It may be less important to have the highest position in the sponsored listings, but if your copy isn’t great, then people aren’t going to click on your ad. Luckily we can help, Rene wrote an article just recently on the 7 rules to great ad copy, check it out here.

Courtney Mills Courtney is an online marketing and communications specialist at ineedhits - a leading search engine marketing firm with over 16 years experience. Courtney has been living and breathing online marketing for over 5 years. She specializes in web and communication marketing, while providing news and opinion to online marketing communities.

View Courtney Mills's profile

Discussion (2 - comments)

There is a (potential) misunderstanding in the summary presented here. A careful read of the Google article shows that they are examining the effect of ad position on conversion rate defined as **conversions per click**. The higher ad position with more clicks will result in more conversions because it will result in more clicks, but the conversion rate is found the be the same.

By Len Hamey - August 25, 2009

site best

By Romase - October 3, 2009

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