[Read] Google: Ad position does not affect conversion rates | Econsultancy

Posted 18 August 2009 23:50pm by Meghan Keane with 3 comments

Web surfers may be more likely to click on search results ranked higher on a web page, but purchase decisions are not so reliant on search positioning, according to Google.

In a post on Inside AdWords today, Google revealed that the position of key words doesn’t affect conversion rates very much at all. If your company is spending time or money trying to get to the top of a page’s search results. Don’t bother.

Google Chief Economist Hal Varian and his researchers have found that while Google ranks ads by their quality combined with the size of a bid, conversion rates are not really beholden to where an ad is placed on a page of search results:

“On average, there is very little variation in conversion rates byposition for the same ad. For example, for pages where 11 ads are shownthe conversion rate varies by less than 5% across positions. In otherwords, 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, onaverage. Ads above the search results have a conversion rate within ??2%of right-hand side positions.”

Now, it’s cheaper for high quality ads to go up in search results, and better ads often have better conversion rates. But looking at the same ad in different positions, it looks like it doesn’t really matters where the ad is located on a page.

“Since Google ranks ads by bid times ad quality, ads in higherpositions tend to have higher quality and higher quality ads tend tohave higher conversion rates… Thus you may see acorrelation between auction position and conversion rates just due tothis ad quality effect. However, the real question is how theconversion rate for the same ad would change if it were displayed in adifferent position.”

For Google, this fits in with their theory of why increased key word spending sometimes results in lower page positioning (and why advertisers shouldn’t mind their results shifting around so much). This doesn’t neccessarily make it easier for advertisers to figure out how much to bid on key words, but it should be interesting to know that while higher positioning often results in more clicks, the number of people making purchases related to those clicks remains the same regardless of where on a page your result appears.

Image: Enquiro

Based in New York, Meghan Keane is US Editor of Econsultancy. You can follow her on Twitter: @keanesian.


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