This tip isn't the most obvious for lots of Google AdWords users
so I thought I would pass it on as it could a) save you money, b) get you an
improved CTR and c) get an improved conversion rate.
Let me start my saying that most new AdWords users start off
with a single bidding strategy for AdWords and that strategy pretty much stays
with them forever, it’s a good strategy, it’s easy to measure and it does bring
with it some success, but it’s flawed!
Adwords offers fairly simple system where the amount you
bid, combined with your Quality Score (a figure calculated by Google), equates
to what AdWords position on Google your ad will end up with (a position from
one to ten)
As a reminder, here the Adwords (Sponsored) ads are
highlighted in red; I've also highlighted in red the ad position number.
This strategy that new AdWords users deploy is that they want
position 1, it’s the highest position and is therefore the best position to be
in right! It’s the topmost position, so
will be seen first as users scan the search engine results, it must be a
winning strategy! Wrong (well sometimes it’s the wrong strategy to adopt).
A general rule of thumb and the one that should sound alarm
bells is that the users of Google have become blind to the top ads, rather like
we all have with banner ads (the ad images that appear at the top of web pages),
we all tend to ignore those now.
What you need to do is look at your AdWords stats to
determine which ad position you tend to get the most clicks and again as a rule
of thumb the lower the average position the cheaper your clicks will be.
Take my latest gig as an example, we were paying more and
more for top position ads and we got into a price war with our competitors, so
it was getting expensive; no-one really knew what ad position was best for us,
but a quick analysis showed that we got more clicks and an improved conversion
rate when our ad was around position 3.
Armed with this little bit of knowledge I did a simple test,
I reduced the Max CPC bids where we had an average position better than 3 and
increased the Max CPC where we were below position 3. (The plan was to bid for
position 3 in all case).
These reduction in bid strategy meant that our ad was less
likely to be shown; but where the ad was shown we would be closer to the
natural search links, therefore be seen as more relevant, hopefully resulting
in an improved CTR and conversion rate.
In just two weeks impressions dropped 18%, clicks dropped 15%,
but CTR went up 5% and conversions increased a whopping 17%. I’m now paying 30% less for AdWords here but
gaining on my better conversions.
Don’t get me wrong, years ago when I started using Google
AdWords I bid for the position 1 and did everything in my power to maintain it,
it worked for me, it brought in business, but little did I know that I could
have reduced my costs and brought in more business!
Remember, calculate where you best ad position is and bid
for this ideal position, which isn't always the top one!
Good luck
