Position is a strong quality and on a brand term it’s always advised to reach that top ranking. You know the conversion rate should be strong and the traffic to be of good quality so you can push those CPCs up knowing it will be worth it. Furthermore, the quality score you should have on the brand will ensure you pay as minimal CPC as possible for the top ranking. And let’s face it, despite the changes in trade marking on Google, the majority of brands have managed to create “gentlemen” agreements in an effort to keep huge competition on their brand.
But in regards to most other keywords such as generics and products, which top position could be too much cost per click to be worth that position. CTR may well be up but so will costs and conversion increases probably wont follow the same increase.
There has been some discussion on which position actually does ensure a strong CTR at a fair CPC. It is generally accepted that a top 3 position is a must for most keywords, particularly the important keywords within your account. Interestingly, I have found in some accounts an improved CTR when dropping from position 2 to position 3. After talking to my colleagues, others have seen similar odd increases in CTR despite the drop in position. Is this because the advert is closer to the organic listings, where the majority of users look?
Unsurprisingly, Google is very quiet on this subject and continues to stress the important of position. Of course they may have a slight reason behind their silent display on the best position. So, when you hear that all that is important is position 1, I would definitely question the truth of that statement!
I read recently that “unless you are in the top, it is impossible to get the best PPC CTR.” I won’t mention the names behind this rational but they followed this statement with this…
I think this may be the very best example of how false that statement is! In this instance, DKI, improved creative and better usage of the landscape highlights how much better position 2 ad is than position 3. Its interesting that the blog this was taken from is also the blog which stated the “Position one or nothing” statement mentioned above. Just looking at this landscape I can almost guarantee that position 2 ad has the strongest CTR, despite the “free” USP from position 1 advertising.
So, what’s in a position? Simply put – not a lot. I believe you need to be in the top 3 positions for those key terms but from there it’s a straight shoot out with USP and use of Google tools such as DKI or (as we head into 2010) site links. Admittedly, on those competitive landscapes, position may be the overall winner as all on the landscape use tactics and tools to improve CTR. But even then, you need to consider how much the CPC increase will effect the inevitable overall spend increase and against your clients targets.
