This post follows Adword Myth#1- The more you pay the higher your ad will show
Some advertisers just can’t believe that being in position 1 on the first page of Google may not be the best thing!
Whether people who click on the top Ad are well qualified or just window shoppers (and evidence suggests the answer is “it depends”!), what really matters is results.
You need to look at your key indicators of performance, not just number of clicks. For most businesses, that will be cost per lead, or return on spend. Sometimes getting to number one 1 will drive up your cost per click, and hence your cost per lead, so much, that your return on investment goes into freefall – and that’s bad!
According to Google’s research, web surfers may be more likely to click on an ad ranked higher on a web page, but purchase decisions are much less dependent on position.
If you are bidding on a very relevant keyword phrase that is highly targeted at your perfect customer, then paying a high price to get to position 1 may be a good idea – you could spend a lot to get each visitor to your website, but if a high percentage of those visitors become customers, it will be worth it.
For one of our customers, we increased the bid for a very targeted keyword phrase to more than 4x its original level, to get the Ad into position 1. As this increased the cost per conversion by only 5%, and the total number of conversions went up, this was a good result for our customer.
However, I have also audited a campaign where a position #1 bid on a more generic keyword phrase resulted in a cost per conversion 10x higher than for other, more relevant keywords in the campaign. In that case, we recommended significantly reducing the bid on that keyword – which moved the overall campaign into profit.
Lesson? Don’t just go for top position – go for results!
Next myth – “Google is out to get me!”
If you would like any advice about this, call Jayne at the Adword Adviser on 01235 424716.