Many new pay per click advertisers get wrapped around the idea that their ad needs to be in the No. 1 position to be effective. Nothing could be further from the truth. In fact, studies show that the No. 1 position is often not the best position. For one thing, to get that position you have to pay some pretty hefty click prices for many niches. And those prices could scale you right out of your ROI.
Which brings me to my next point. The best PPC position is the one that will maximize your ROI. In other words, where will you make the most profit on sales achieved from your clicks on that position?
That’s a difficult question to answer and it can only be answered through tests. You have to raise and your lower your click bids until you arrive at the best position then fight to keep it. And the best position for you may not be the best position for someone else. It all depends on the effectiveness of your ad, the effectiveness of your landing page and the price of your clicks. Test, test and test some more.
Ideally, all of that said, the best positions for many advertisers tend to be Nos. 2-4 on page 1 of the SERP. Why are these the best positions? That’s a good question.
Typically, the first position is owned by a big brand that is in protective mode. They’re more worried about keeping their market share than increasing business. For them, the ad is as much about keeping the name brand front and center than about getting click throughs. If it achieves that purpose then they consider their PPC campaign successful even if it loses money. As a small business you can’t afford to do that.
Your goal should be to spend as little as possible on each click to obtain the highest number of conversions at the highest possible price for your product. If your product has a low profit margin then you don’t want to spend too much on click prices. Settling for a lower position may actually produce a high profit margin for you.
So what’s the best PPC position? It depends on a number of factors, all of which have to constantly be tested.