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5 important AdWords insights in 5 days – Day #1

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Top Contributor
# 1
Top Contributor

Hi All,

 

In the next 5 days I would like to share my knowledge and experience of AdWords with you all. Every day, I am going to discuss an important insight of AdWords in detail which somehow is often misunderstood.

 

To make it successful I need your active engagement. I would like to really listen to your views on the topics. Let’s have a healthy discussion. 

 

Day 1: AdWords Insight # 1 –

 

 

Does ranking at the top of all ads yield more conversions?

 

To me, there is no correlation between our ads’ top position and conversion rate. 

 

Conversion rates that you derive from your campaigns depend on several aspects starting from the keywords you choose, ad copies you write, landing page you have, and the extent to which your entire strategy succeeds in convincing your potential customers to be the real customers.

 

Let’s take a few practical situations -

 

  • What if your ads are ranking at the top, but your ad copies do not bear much relevance to users’ search query?
  • What if your competitors’ ads are more relevant to what your potential customers are searching for, and they offer more benefits to the end users than you do?
  • What if your ads succeed in brining targeted traffic to your website, but your landing page fails to convince them to convert?

Will you get the maximum number of conversions in the above situations?

 

The answer is - No.

 

Okay, let us be over optimistic to assume that it fetches maximum number of conversions in a certain case. Now there comes another significant question – Will it guarantee a positive ROI?

 

The answer again is – NO. Why?

 

The reason is obvious – by running a rat-race for top ad positions you would be paying more than you would otherwise be. Consequently, you would be increasing your spends and decreasing the profit margins. It will eventually lead to a situation where you may have negative ROI. Is it what you aim?

 

No! Obviously not.

 

Hence, conversion rate should not directly be linked to ad positions. Remember the aim of advertising is to get the maximum number of conversions by spending the least possible amount.  This is the reason your existing and target conversion rate should determine the optimal ad position you should be aiming to keep your revenue to the maximum and ROI to be positive.

 

To sum up I would say - ranking ads at the top does not necessarily increase conversions, but it definitely increases the amount you pay. Thus, it's wise to find the most profitable ad positions for your ads, instead of going for a blind race for number 1 ad rank. After all, we advertise for ROI, not for ranks. 

 

I would love to listen to your thoughts on this. 

 

Further readings -

One of my favourite bookmarks on this topic

External Link

Community Post

 

----------------

 

Does repetition of keywords improve quality score? - Day #2

Does a keyword with No-Competition have the lowest CPC? - Day #3

Bidding the highest – Does it guarantee top ad position? - Day #4

Does AdWords increase organic rankings as well? - Day #5

 

----------------

 

Thanks
Ratan Jha

 

3 Expert replyverified_user

Re: 5 important AdWords insights in 5 days – Day #1

Level 5
# 2
Level 5
Position bidding is a great optimization tip. We need to follow bid stacking strategy and look for ad positions that works the best. I have seen clients achieving better conversions for position 2 and 3. I completely agree with you over this.

Re: 5 important AdWords insights in 5 days – Day #1

Top Contributor
# 3
Top Contributor

Hey Amit, 

 

Thanks for following along from partner's community to here.

 

Bid stacking or tiered bidding can definitely be one method to find out the optimal ad positions working for one's campaigns. After all, it's the conversion that matters, obviously not the ranks. 

 

Thanks
Ratan Jha

Re: 5 important AdWords insights in 5 days – Day #1

Rising Star
# 4
Rising Star
Completely agree with you here Ratan. I don't believe there is any direct correlation between high positions and no of conversions and also agree with you when you say that we need to find the most profitable average position and by that I mean in terms of most converting average position and also in terms of the position getting you more ROI.

Great article here. Thumbs Up!

Cheers!

Shashank
Cheers
Shashank

Re: 5 important AdWords insights in 5 days – Day #1

Top Contributor
# 5
Top Contributor

Thanks for your supportive words @ShashankSingh . 

 

Do share your thoughts on the day #2 post. It's here Smiley Happy

 

Thanks
Ratan Jha

Re: 5 important AdWords insights in 5 days – Day #1

Level 5
# 6
Level 5
I agree with you Ratan, I learnt recently (ofcourse as one does initially through trial and error) that ranking positions do indeed expose you to the "happy-clickers" whilst often having one pay through the nose for those positions.

Your points of having alternative positions, more finely tuned ad copy and landing pages designed to be coherent with your ads are sage advice.

Look forward to more.

Re: 5 important AdWords insights in 5 days – Day #1

Top Contributor
# 7
Top Contributor

@Samrat P 

 

Hi Samrat,

 

I am glad you liked it. 

 

Here are day #2 and day #3 insights:

 

Does repetition of keywords improve quality score?

Does a keyword with No-Competition have the lowest CPC?

 

Do share your thoughts.

 

Thanks
Ratan Jha

Re: 5 important AdWords insights in 5 days – Day #1

Level 6
# 8
Level 6
Good article! I have noticed that if I rank organically for a keyword I get more conversions if the ad is closer to the organic listing - either position 2 or 3. I try to focus on a good quality score by creating relevant ads and landing pages. Raising bids is a last resort for me.

Re: 5 important AdWords insights in 5 days – Day #1

Level 5
# 9
Level 5
Hi Ratan,
An amazing insight really about the mad rush to be on top of the ranking race. Once there, if the copy is only so-so, it will make the whole position weak. The landing page support with awesome copy that arrests the attention of the visitor- matters as much as the rank itself. Your write up is insightful....thanks.....

Re: 5 important AdWords insights in 5 days – Day #1

Level 5
# 10
Level 5

This is fantastic. What great insight. Cheers @Ratan-Jha

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