March 18, 2015

Trust, Ad Positions and Conversions Rates

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What is the Best Ad Positions for Conversions?

I noticed a change in the conversion performance of one of my best clients, Digital Direct Aerials, where their ads are now converting at the same rate in all the three top positions.

This is exactly as Google has claimed for over 10 years now. That the overall conversion rate is about the same for positions 1 through 10.

Over those same 10 years I have always known and seen that, for small companies, the conversion rates were significantly higher down at positions 2 and 3.

The reason for this divergence could be understood by asking the question; why should I go back up to the first listing?

If the number one Ad was for a company you had an account with, or trusted better than you might go back. Wider industry data confirms that the likes of Amazon, Apple & John Lewis convert better at position one.

Redditch Ad with Gold Stars advertisor reviewsMy aerials company caused me to check a number of clients to see if my old rule was no longer true. Yet, the great majority would still be throwing their money away bidding for position one. Paying more for every click and getting fewer conversions.

Only one other company was also converting just as well at Ad position one.
When I looked for the common factor, I found that you were both getting Advertiser Reviews gold stars next to their Ads. In fact both were using Trustpilot, one of the main sources of reviews that Google uses. The Ad on the right also benefits from geographic targeting as the search was for ‘aerial installation redditch’.

An experiment of increasing the bids for some Keywords, produced two-times the clicks at position 1 than at position 2 only resulted in the conversion rates at position 1 falling behind again. Clearly still a waste of cash. There was still a sweet spot for the average position, it was just a little higher.

Trust and convenience are the 2 factors that can cause searchers
to make the 2 clicks back to the position 1 Ad even after they have found
another very similar offer.

Trust is a strong factor in conversions. Customers of Digital Direct Aerials now regularly cite the genuine, unfiltered, independent reviews as the reason they made their call.

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