Bidding For Top Position In Google AdWords: What Does It Get You?

Bidding For Top Position In Google AdWords: What Does It Get You?
SHARE
THIS



In this guest post, Nathan Sinnott, CEO of Newpath WEB, explores the good and bad behind Google AdWords, and if there’s any real value in chasing that top spot for your brand.

One of the oldest and still hotly contested debates in AdWords is just how much value there is (or isn’t) in bidding for the top position. Much of the time, marketers and executives will bid for the top position for their keywords in the pursuit of that winning feeling.

There’s no denying it, we all know that feeling of seeing our company at the top of a search engine results page. But, I want to take a look at the difference between the top spot, and positions below it. How does the rank of your ad impact its results?

Does it differ on Google vs. their search partners? I’m a certified AdWords partner in Melbourne and a bit of a nerd, so I love this stuff, and found the results very interesting.

Top vs. Not

I started looking at data over approximately one year, across a variety of industries and search terms. This data can be pulled from Google using the Top vs. Other segment where you can pull this data for specific levels of your own accounts and brands.

The differences when combining all search traffic (Google + Partners) makes a very compelling case for top placements.

Not only does the consumer click at a rate that is approximately ten times, the conversion rate is double, and the cost per click is almost one half. Pretty compelling hey?

This all adds up to greater numbers of sales, at a lower CPA (Cost Per Acquisition).

Google vs. Partners

The difference for the partner network also tells us a pretty interesting story.

Google outperforms the partner network in click through rate and conversion rate, however with a price tag attached as the CPCs (Cost Per Clicks) are higher.

According to recent reports, Google experienced two per cent growth in partner traffic vs. a 40 per cent growth in their own traffic. I’m sure that some of the shifts in their partner network have a lot to do with this, but maybe advertisers are getting savvier with their data and opting out of the partner network for these very reasons?

What should you do with this info?

  1. Lift the lid on your own metrics. What do they tell you? Measuring top position is almost never the right metric to judging success, however understanding the building blocks that make up your success is important obviously. Take the time to review this data, or bring in an expert that can help you – like me.
  2. Have you considered if the search network is right for you? If you are running on a tight budget then it probably doesn’t make sense to extend your full keyword list to the partner network. But… this doesn’t have to be an all or nothing approach. Choose your best performing (or preferred keywords for a particular reason – highest profit yield etc) across the networks.

There’s a wealth of enormously beneficial information hidden in your data. Taking the time to analyse and understand it, to make informed decisions is what will set your campaigns apart from your competition.

 

 

Latest News

Haystac Shakes Up National Leadership Team
  • Media

Haystac Shakes Up National Leadership Team

Haystac, part of the BWM Dentsu Group, has announced three key changes to its national leadership team as the agency evolves to service the needs of major national and global brand clients. Haylie Marchant moves into a new national role, as head of strategy at Haystac. Formerly the general manager of Haystac Brisbane, Haylie will drive Haystac’s new […]

Virtue Announces New Key Hires, Campaigns And Partnerships In Australia
  • Marketing
  • Media

Virtue Announces New Key Hires, Campaigns And Partnerships In Australia

Creative agency VIRTUE has introduced a number of key hires, innovative campaigns and an expanding roster of clients within its newly established Sydney office. VIRTUE is the creative agency born from global youth media company VICE, and will service the whole of Asia-Pacific from three offices in Sydney, Singapore and Seoul. The agency aims to […]

QMS Unveils New Billboard In Melbourne’s Bayside
  • Media

QMS Unveils New Billboard In Melbourne’s Bayside

QMS has officially launched ‘The Bayside,’ dominating the landscape in the heart of one of Melbourne’s fastest-growing coastal suburbs and gateway to the popular Mornington Peninsula. Strategically situated on the Nepean Highway, one of Melbourne’s primary connector arterials, ‘The Bayside’ captures the attention of heavy flowing traffic along the shore of Port Phillip Bay. With […]

Coles Local Appoints Keep Left To Creative & Content Account
  • Advertising

Coles Local Appoints Keep Left To Creative & Content Account

Keep Left has been awarded the creative and content account for Coles Local, an exciting new retail offering from Coles Supermarkets. Coles Local is designed to inspire a love of quality food and provide a tailored, in-store culinary experience for the local community.  The first Coles Local store opened in Melbourne’s Surrey Hills on 13 […]