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Why a Lower Adwords Position Can Increase Your Website’s Conversion Rate
user icon Posted by david on Friday, August 28th, 2009

Google has been ruffling a few feathers recently after announcing on its Adwords blog that the position your ad appears in the search results doesn’t affect its conversion rate. Its research suggests that whether your ad appears at the top of the page or the bottom the likelihood of people taking action on your website remains the same.

This news has been greeted by a mixture of shrugged shoulders and furrowed brows. Some people wonder why this is even news, whilst others are annoyed at Google’s subtle marketing ploy. Because Google’s research could be interpreted as suggesting the only way to improve your website’s sales is to attract more traffic, which means getting sucked into a bidding war for the top positions.

So is Google correct and the conversion rate remains the same wherever your ad is placed? Or can its position and content be optimised to attract a higher proportion of buyers, rather than browsers?

Who cares about clicks? Send me customers!

Many big companies buy up the top positions for generic terms as part of a branding strategy. They want you to find their website as soon as possible so you can register and bookmark it, even if you’re not yet ready.

This strategy is fine if you’re happy to throw £1000s at Google Adwords everyday. But if you’ve a limited budget, chasing after the top position might not offer you the best return.

Most people initially search the web for information. So if your ad is in top position you’ll attract a lot of browsers at the early info gathering stage.

If your ad appears lower down you’re going to attract fewer clicks. But the clicks you do receive will be from people who’ve scrolled down the page, which suggests they’ve progressed further along the research stage and are closer to buying.

So an ad in 7th or 8th position might attract fewer clicks than those at the top. But, potentially, a higher proportion of those clicks will be from people who’ve picked out your ad for a specific reason. So managing your bids to appear further down the page could offer you a better return on your Adwords investment than fighting an expensive war for top position.

To increase your conversion rate it can also help if your ad is targeted at specific prospects, rather than as many people as possible.

How can my Google Ad be better targeted at buyers?

One of the world’s best known copywriters, Bob Bly, recently said that every great ad has four ingredients: urgent, useful, unique and ultra-specific. This is particularly appropriate to creating targeted Google ads.

Instead of focusing on generic keywords, consider how your ad can be made more unique and ultra-specific. If you sell a range of products, how can you create an ad targeted at customers for each one?

For example, if you sell industrial furniture you could create separate ads focused on ‘antistatic workbenches’ and ‘small parts storage cabinets’. You could also include the price to dissuade clicks from those on a limited budget. Your ads might attract fewer clicks. But a higher proportion of those clicks will be from targeted prospects more likely to buy.

The beauty of Adwords is you can split test different keywords and descriptions to discover which offers the best conversion rate for you. Just don’t listen to Google and settle for a 1% conversion rate when higher ones are possible.

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BDA (Buckingham Design Associates) blog – real people giving real opinions, and a complete lack of agency waffle. BDA deliver an exciting blend of design and creative marketing for the Oxford, Milton Keynes, Northampton and London region.

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4 Responses to “Why a Lower Adwords Position Can Increase Your Website’s Conversion Rate”

  1. PPC Hero News Roundup for Friday 8/28/2009 | The Adventures of PPC Hero Says:

    [...] and ambivalence. Regardless of whether or not it’s more than a slight marketing ploy, a lower position can possibly increase conversion rates – if you have specifically targeted [...]

  2. Net Biz In Buzz » ‘Why a Lower Adwords Position Can Increase Your Website’s Conversion Rate’ by David Knowles Says:

    [...] Why a Lower Adwords Position Can Increase Your Website’s Conversion Rate [...]

  3. Lower AdWords Position, Higher Conversions? Says:

    [...] David recently made the point that lower AdWords positions can actually increase your conversion rate. [...]

  4. 8 Vital Website Conversion Tips for Turning Clicks into Sales | bda - Buckingham Design Associates Says:

    [...] by Matt on Friday, September 11th, 2009 Archived in Blog A couple of weeks ago we offered a few tips on driving traffic to your website using pay-per click ads. Now, driving traffic is one thing, but you still need to [...]

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