Good Guys Finish in the Middle… And Are More Profitable!
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So within the world of PPC advertising, it’s always the most profitable to rank #1 in ad positioning, right? NO! From my experience, I’ve found that it’s almost never beneficial to hold a #1 position. The deficiency of the higher CPC cost almost always outweighs the benefit of the top positioning, thus greatly hindering profitability. I’ve found optimal positioning for profitability to be in the 4-6 positions. However this will vary on a case by case basis depending mostly on the competitiveness of each keyword. So remember, first is not always best!
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Seth … this is true for some industries and not true for others. Here is an example.
If I sell a product that people usually like to research and compare with competitors, YES it’s best to be #2, 3… BUT If I am selling an item that people do very little of research on and rarely compare with competitors… I want to be #1.
If I sell linen, I want that #1 spot in order to get the visitor right away and interest him/her in the items I have. So even though I agree with you that for many companies it’s best to be positioned 2nd or 3rd, I’d put a big “Depends on industry” sign on your statement.
April 7th, 2006 at 10:26 am