In the rush to be successful in the search engines AdWords management, some companies often equate ad position with success. Quite simply, they fall for belief that possessing a higher ad position means that they may necessarily be a little more profitable. But that’s not always so!
First, let’s explain what we mean through the phrase “ad position”. Ad position means the rank of the ad someone searches in Google. For instance, let’s point out that someone searches in the phrase “best loans”. Google will work its best provide the most relevant ads and the most relevant organic (or free) listings for this search query.
Paid ads will usually attend the particular top and off on the right-hand side. Let’s say you can find seven paid ads and all of them are listed across the right-hand side. If my company’s ad reaches the particular top, then my ad is in “ad position #1.” If my ad were 5th from your top, then that would be “ad position #5.”
Now to the majority people and a lot of inexperienced in adword campaign management, it might seem the higher ad positions would be the most coveted…after all, the better the ad, the greater clicks, right? Absolutely. Chance are that (things being equal) in case your ad is high in the page, you will definitely get more clicks. But those clicks don’t necessarily translate to more sales. In reality, often those clicks can find yourself costing you cash than you feel. Here’s why…
You need to consider the buying stage that a customer is if they are clicking ads. True, they can click your ad first if you are near the top of the page, but the typical potential buyer is more than likely in the “research stage” at that time where they click the ads closest to the very top of the page.
Reports have proven that numerous times the further down a page a searcher goes, the closer the searcher is usually to creating a decision or the more desperate the potential customer is to find the correct means to fix the trouble.
Let’s explore a scenario and say for the sake of even numbers the top ad position for that keyword “divorce attorneys” can be found for $10, but to be in position #6 around the page only costs you $4 per click. Now, let’s imagine that the very best position gets 30 clicks out from one hundred searches, only 5 of people lead to a lead as the searcher is not finished “researching”, since they are simply clicking every one of the ads to have a sense of the advertiser.
So ad position #6 gets 15 clicks, but those clicks lead to 5 leads. Who wins? Well, ad position #1 paid $300 (30 clicks X $10) for the clicks and got 5 leads. Which is a cost of $60 per lead ($300 cost / 5 leads). Ad position #6 cost the advertiser $60 (15 clicks X $4) and because they obtained 5 leads, those leads only cost $12 per lead ($60 cost / 5 leads).
In this scenario, ad position #6 won, but hold on the minute! Can you imagine if position #6 only got 4 leads. That changes the particular cost per result in $15, however if the average conversion contributed to a sale of $one thousand in legal fees and also the conversion rate was say 50%, then despite the fact that ad position #1 cost a lot more per lead, it is ultimately more clickmmarketing than position #6.
Sound confusing? It should since it is confusing and normally requires expensive alternative party software to evaluate properly. If you are not testing or maybe your account has been managed by somebody that hasn’t asked the right questions, then your campaign may already be in actual trouble.
The sole option to finding out what is perfect for you is always to test, test, and test again. Professional AdWords management always commences with good keyword research and ends with proper testing. Though, in fact, top AdWords managers never stop testing what works for clients.