If you are a client of IMEG you have probably heard us say that position 1 is typically not the best for conversion when it comes to paid search. A recent study by Adobe Media Optimizer in February 2016 proves this point by showing that the 4th position on the page produces the best results. According to this study, the cost per click dropped, but the click through rate increased following Google’s removal of the right sidebar ads.
This study was conducted to measure the impact of the removal of right hand sidebar ads. The study also shows that this change has greater impact on smaller advertisers and less so on larger advertisers. The impact on the smaller advertisers is that they will see an approximate 10% drop in clicks that appear in lower positions on the page. The cost per click went up for the number 1 and number 2 positions on the page to 6%-7% more. What this shows is that most advertisers are bidding higher on position 1 and 2 when, in fact, some of the lower positions like 3 and 4 are producing better click through rates. The click through rates for the 4th position went up 18%. The click through rate for position 2 did not show much change at all.
The big issue is that Google does not always serve up a 4th ad, so the removal of the right hand rail ads now require smaller advertisers to pay more to reach a top position, but the conversions seem to be better — for most businesses, it is a balance.
This is a broad analysis, but what we took away was the following:
- The removal of right hand side bar ads did grow revenue for Google
- Cost per click did rise for #1 and #2 positions, but fell for #3 and #4
- Ad impression volume dropped an estimated 10%
This data is good to think about and look at, but is very broad. We challenge you to use this as awareness and look at your Google AdWords account to review and watch your data.
If you do not have time, we can help manage your Google AdWords account and other paid search accounts to ensure you are getting the best conversion and return on your investment. To get a free analysis of what IMEG can do for you go to https://imegonline.com.
