Positioning Your Ads: Does Ad Position 3, 4, or 5 Generate More Conversions Than 1?

When optimizing Google AdWords campaigns, ad position can significantly impact your overall performance. Ad positions 1, 3, 4, and 5 all have their advantages and disadvantages. This article explores whether ad positions 3, 4, or 5 generate more conversions compared to position 1, while also discussing the importance of click-through rates (CTR) and Quality Score.

Understanding Ad Position Impact

The table below shows the CTR for Google AdWords ads from position 1 to 9, in percent:

Position CTR Rate (%) 1 7.11 2 3.01 3 2.19 4 2.15 5 1.61 6 1.04 7 0.89 8 0.75 9 0.55

These CTRs are vital because they illustrate how ad position affects the number of clicks an ad receives. Position 1 consistently gets the highest CTR, followed by position 2. However, it's important to note that while a higher position can result in more clicks, it does not guarantee a higher conversion rate or a better Cost Per Conversion (CPC).

The Relationship Between Click-Through Rate and Position

Google uses CTR to calculate your Quality Score, which in turn influences your ad's cost. Therefore, if your ad in position 1 has a low CTR, your Quality Score might decrease. Conversely, an ad in position 3 with a CTR of 4 can see an increase in its Quality Score. Higher Quality Scores directly correlate with lower Cost Per Conversion (CPC).

The following graph illustrates the relationship between average Cost Per Conversion and Quality Score:

Data indicates a very strong relationship between average Cost Per Conversion and Quality Score. Thus, the higher your Quality Score, the lower your CPC will be on average. Optimizing for Quality Score and optimizing for CPC are essentially the same goal.

Implications for Ad Position Optimization

While higher positions generally mean more clicks and, consequently, more conversions, the key is content. An ad in positions 3, 4, or 5 can still generate significant conversions if the ad is compelling and aligns with user intent. The offer must be compelling and meet or exceed user expectations. Here are some tips to improve conversions from lower ad positions:

Split Testing: Conduct A/B testing on your ad headlines, including color schemes, to find the most effective combination. Quality Landing Pages: Ensure that the landing page is relevant and provides a seamless user experience. Quality of Traffic: Use the right keywords and ad descriptions to attract the right audience.

While ad rank plays a role in ad position, it is not the primary determinant of your conversion rate. Your preference should be to be in a higher position, such as position 1, as it typically results in more clicks and conversions.

Conclusion

In conclusion, while ad position 1 will generally generate the highest number of clicks and conversions, it is not always the most effective. Ad positions 3, 4, and 5 can still drive conversions, especially if the ads are well-crafted and offer significant value. The key is to maintain a high Quality Score, which can be achieved through split testing, optimizing landing pages, and ensuring the right keywords and descriptions are used.