Google is finally helping us answer the age old question: “Is the top paid listing worth the extra spending?”
Recently, Google announced “Top vs. side” AdWords report segmentation. With this information search marketers are able to more quickly distinguish the performance of the various positions. It’s been touted for years by Google that the top ads get more clicks. More clicks mean more revenue for Google. However, as said before if you are asking for more clicks, then you are asking the wrong question.
For most AdWords veterans the side vs. top issue has been a know measurement for years. In 2007, I wrote in Seven Habits of Highly Effective Pay-Per-Click Advertisers:
#5. Avoid Number 1. The number one position is a bad ROI. Often times that can also be said about the #2 and #3 position. The traffic coming from the top positions are not buyers, they are just researching. Serious buyers WILL go to the 3, 4, 5 position. When the consumers are ready to buy, they will be back. Be patient. |
Over the years I have found that avoiding number 1 is not definitive. Although still a very small percentage, there are some instances when number 1 is the right return on investment. Finding that small percentage requires a lot of trial and error. With the new feature by Google that time may have been reduced.
The new Top vs Side data can be found in the campaign segment pull-down as seen below.
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July 19th, 2011 at 9:34 am
Eye tracking studies have shown that users look at the top of a search result much more than the side. Human nature is to start at the top and look down. Search users are also smart and have grown accustomed to seeing ads on the side and tend to may more attention to the organic section.
July 28th, 2011 at 7:13 pm
Thanks for letting us know about this tool. I agree with Nick that most searchers don’t naturally look to the side ads.