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Observations on How Ad
Position Impacts CTR, Conversion Rate and CPA
Please note that this chart is a compilation from
our portfolio of data and may not be representative of your products or your
industry.
| Ad
Position |
CTR |
Conversion
Rate |
CPA |
Conversions per 10,000 Impressions |
| 1.0 - 1.9 |
3.0%
|
1.9%
|
$ 60
|
5.5
|
| |
|
|
|
|
| 2.0 - 2.9 |
0.9%
|
2.4%
|
$
38
|
2.1
|
| |
|
|
|
|
| 3.0 - 3.9 |
1.0%
|
1.6%
|
$
60
|
1.6
|
| |
|
|
|
|
| 4.0 - 4.9 |
2.3%
|
5.2%
|
$
60
|
12.0
|
| |
|
|
|
|
| 5.0 - 5.9 |
1.0%
|
2.8%
|
$
84
|
2.8
|
| |
|
|
|
|
| 6.0 - 6.9 |
1.5%
|
3.6%
|
$
57
|
5.2
|
| |
|
|
|
|
| 7.0 - 7.9 |
1.0%
|
7.8%
|
$
50
|
7.6
|
| |
|
|
|
|
| 8.0 - 8.9 |
1.1%
|
2.9%
|
$
78
|
3.3
|
| |
|
|
|
|
| 9.0 - 9.9 |
0.6%
|
3.4%
|
$
74
|
2.2
|
| |
|
|
|
|
| 10+ |
0.7%
|
2.4%
|
$85
|
1.7
|
| |
|
|
|
|
| Totals |
1.2%
|
2.3%
|
$53
|
2.7
|
Here’s a summary of observations from our data sample:
- CTR
– Not too surprisingly, the highest CTR of 3.0% was found at position 1,
while the lowest CTR of 0.6% was at position 9. Note that CTR for position 2
dropped significantly, with a slight gain in position 3 and an even higher
CTR in position 4, the second highest CTR.
We
believe that position 4 did so well because many times the search
engines show 3 paid listings on the left side of the screen, leaving the 4th
position ad to show at the top of the right hand column.
- Conversion
Rate - The highest Conversion Rate of 7.8% was found at position 7, while the
lowest Conversion Rate of 1.6% was at position 3. The best conversion rates
were generally at position 4 and lower.
A possible
reason for why the lower positions bring in generally higher conversion rates is
that visitors who take the time to read 4 or more ads may be further along in the
buying cycle. As they're at that stage where they are ready to purchase, they're
looking for more of an exact match to their needs.
Many
prospects who are in the research mode will probably click on multiple listings
higher up on the page to gather more general information on the product or
service as well as information regarding differences in brands.
- CPA
– The Cost Per
Acquisition metric, perhaps the most important statistic, had its best
value at position 2, while the worst CPA was found at position 10+.
Note that due partially to its strong conversion rate, position 7 registered the 2nd best CPA in our
compilation.
- Conversion
Effectiveness Factor: Conversions per 10,000 impressions – Here’s a
statistic that shows the likelihood that our ads at various positions
ultimately led to a conversion. It
depicts the number of conversions we recorded for every 10,000 impressions
at that ad position.
Our data showed that the highest rate of
conversions per 10,000 impressions of 12.0 was found at position 4. This result
was significantly higher than any other positions and likely shows the power of
the 4th position in our data. The lowest rate of conversions per 10,000
impressions of 1.6 was experienced at position 3.
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