Google’s Chief Economist Dan Friedman Hal Varian and his team have conducted research on whether ad position affects conversion rate. Their conclusion is that it doesn’t much. I have a feeling “much” is subjective among SEMs.
Their research showed that for search results pages with 11 sponsored ads, conversion rates “only” varied 5% from first place to last. So, if an ad gets a 1% conversion rate in the first place, the worst it would get is 0.95%.
Friedman Varian wanted to emphasize that ad position is affected by ad quality. Therefore, ads with higher ad position are likely better quality and more likely to have higher conversion rates. In other words, don’t compare apples to oranges when testing ad position. You would need to test the same ad across various positions.
What do you think of Friedman’s Varian’s research on the correlation between conversion rate and ad position? Do you agree with his findings? Should a 5% variance really be considered low? Tell us your thoughts in the comments. (Comment position is first-come, first-served.)
Related reading
What’s next for Adblock Plus and its Acceptable Ads Platform?
Adblock Plus made a major announcement last week that it would create its own RTB platform and get into the ad business.
Are your emails personal enough?
When it comes to email content, we know that data is key to ensuring messages are relevant and engaging for those who are receiving them.
Nine ways brands can improve emotional connections with customers
It’s not easy to convince a customer nowadays to trust your company over another, but the right emotional connection may lead to ... read more
Coalition for Better Ads to make digital ads great again
A new organization, The Coalition for Better Ads, has been launched to "leverage consumer insights and cross-industry expertise to develop and implement new global standards for online advertising that address consumer expectations."
