Digital Marketing Strategy

The thoughts, ideas and insights of XYZdirect
a leading Sydney based digital marketing agency.

Do page 2 positions work on Google Adwords?

without comments

Campaign Overview

Our objective was to drive qualified traffic to Value Added Promotions (VAP) website,
using AdWords.

Many of the key products VAP markets where highly competitive within Google
AdWords with cost per click (CPC) rates hovering around the $10 level.

At this CPC level, if we held our current conversion rate of 21%, the Return on
Investment was well in the red.

To make the campaign effective we had to hit a CPC level of $1.75.

Our approach
We tested the hypothesis that it would be better to be number 1 on page 2 of search
results than number 4-8 on page 1, which happens to be 9 th place.

We knew from previous testing that over 80% of page one AdWord responses are
taken by spots 1-3.

The results
We found that the top AdWord spot on page 2 could be attained at a CPC 400%
cheaper than any of the top 3 spots on page 1. Critically though, the click levels
remained respectable at circa 30% of those achieved by the number 1 spot, on page 1.

And the news gets better as the conversion rate of the clickers from position 9 where
over 5% better than those from position 1 on page 1.

Essentially it would seem position 9 generates a more committed prospect.

Written by David

May 22nd, 2009 at 11:38 am

Posted in search marketing