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What Are The Advantages Of Bidding For Top Position On SERPs?

You might be well aware that automatic bidding algorithms are a part of the paid search tool set, where an algorithm is allowed to control ad groups and keyword-level bids based on goals and performance. Other than these automatic bidding algorithms, artificial intelligence is also in demand. With all this information and computing power, there are some strategic decisions that are handled by search marketers.

Let us talk about the value of ads in the top position. Why do people want to bid for top position? One, it brings a feeling of victory to see your brand at the top of a search page. Second and most important, to get more traffic to your business and generate more leads. But, have you thought what difference does it make if you don’t make it to the top and are shown at the side position? Let us take a look.

What is the difference between top position and side position?

In order to realize the difference between the two positions, you need to focus on data results. If you concentrate on the results of data pulled from Google in the last 13 months, you will be able to see the difference. You can use the Top vs. Other segment to get the data for specific levels of your brands and accounts.

Combining all search traffic coming from Google and Partners, we can see that the click rate of top ads is 10X, conversion rate is 2X and cost per click is almost only half! Another way to look at this is that for every 1,00,000 impressions, the top ad position has 3349% more sales with a very low cost per acquisition that stands at nearly 63%. Branded terms do impact this analysis. Consumers have better branded association with top ranked ads on SERPs.

Does the impact of your ad rank differ on Google vs. its search partners?

Google outperforms its partner networks in click-through-rates and conversion rates. The CPCs are slightly higher here. Google has seen a 40% growth in its own traffic while only a mere 2% growth in partner traffic. Google yields a better CPA by 40% for top ads and 7% for side ads compared to offsetting the increase in CPC. Advertisers are getting confident with their data and are opting out of partner networks.

Does bidding the highest guarantee a top ad position?

The ad position is decided by ad ranks, which is a score given to every ad based on your bid, quality score and the impact of extensions and ad formats you use with your ads. Google analyzes all these factors before deciding the rank for your ad. In a simple equation format, maximum bid x quality score = ad rank, which decides the ad position. So, although bidding is a factor considered for your ad position, it isn’t the only aspect considered. So, don’t expect that is you bid high, you will start ranking higher and reach the top. 

After acquiring this information, you can decide on which search network is right for you. If you have a limited budget, there isn’t any need to extend your full keyword list to the partner network. Decide on the right keywords and select the campaigns that will perform best on any network. Also, remember that always measuring the top position for your ad is not the right way to judge success. You need to understand those building blocks that help to develop your success.

You can hire our best digital marketing company in Bangalore  to help you in every step of online marketing your business to reach to the top.

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