Geek's thoughts…. Purely Online Media

Google AdWords Position vs Conversion rate

Do you believe Conversion Rate doesn’t depend on Adwords position?Even I did not until I came across adwords blog where Google chief economist “Hal Varian” says Conversion rate is not influenced by ad words ranking……. 

He says Conversion rate does not depend on Ad words position.A new research by him and his team has found that conversions does not actually depend on the rank of google ad words.Their study says only a marginal difference exists between various ad positions.

For example he quotes, if  a Top rank ad gets 1% conversion, then an ad in the worst place would atleast receive 0.95% conversion rate.The study would definetly bring a greater sigh of relief to marketers who shell out money fighting for top positions for better conversions….Google also ranks ads by bid x ad quality, explained Varian, and ads that rank higher tend to be of a higher quality. Those higher quality ads tend to have higher conversion rates. “Thus you may see a correlation between auction position and conversion rates just due to this ad quality effect”.

Also, would be curious to know about the relation between adwords position and click rate…..but with my experience what I have seen is, adwords on the higher positions linked to the most appropriate keywords, gets higher click rate

So to end, neither this sample study represent the entire paid search market nor warrant the same result, but the important point here to note is, to analyze this relation for your campaigns and see if the study proves correct to you, afterall nobody wants to spend time, money only to capture top adwords slot which anyways does not matter much………

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