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Lower Positions On Pay Per Click


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6 replies to this topic

#1 Bri

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Posted 19 May 2009 - 02:25 PM

I have been updating my pay per click campaigns and analyzing their effectiveness of my keywords, and came across something fairly interesting. I would like some feed back for others on the subject. Early on I have noticed that keywords I have been gathering for pay per click that show up in lower results have had a higher quality of visitor. By that I mean lower bounce rates, more page views and higher conversions. I wondered why this may be happening. the same keywords higher up in the sponsored results lose this quality, not by a lot, but nonetheless they do. What might an advantage be that I may be able to take from this information. lower pay per click cost, higher quality of visitor; The downside? Less traffic of course. However, I can offset this by increasing the amount of keywords I enter the more I can offset this, have an overall lower cost and a higher quality of visitor. One reason I can figure for this is this is that when someone is thoroughly searching for a service they like, they are more likely to go down the list of sponsored ads. When they are not as dedicated to the search or are more frivolous in their search. they may just click on the first result and leave quickly.
Questions: 1. Has anyone else noticed this phenomenon in other industries? 2. Could this translate into SEO? Any other feedback welcome.

#2 gsimerlink

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Posted 20 May 2009 - 11:48 AM

Bri,

I have a question. Are you saying that you've noticed a better click through and conversion rate on your ads when you've lowered your bid on those same keywords, or are you just looking at the ones where you happen to have a low bid in comparison to competitors? If it is the latter it could have to do with your ad copy being better (better targeted click through) and having a great landing page (better conversion).

I think there is something to your statement about some people just clicking on the first result a bit frivolously, compared to further down the page where they might be more serious. It sounds logical, but I haven't seen any data.

We use an agency for our PPC and they use an efficiency model. So sometimes a keyword actually performs more effectively on the basis of ROI when it is in 8th place on average. Basically they use the law of diminishing returns and find the sweet spot for each keyword. I find it's a hard concept for some people to understand, especially if they are stuck on being #1.

As far as the translation to SEO I think it's a totally different creature. Since with SEO you donít have a per click cost there isn't a real problem with having more people clicking on your page, other than driving down your conversion rate. But if you've done proper SEO then you shouldn't have much junk traffic to even affect your conversion rate.


#3 Bri

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Posted 20 May 2009 - 01:14 PM

After first noticing this I began to test it by lowering bids on other key words. I think i will try to create a more involved test though. I agree that SEO is a completely different creature. I don't see how this could translate over myself, but hoped there may be some other perspective. So the bottom line with my SEM campaign now is finding as many keywords that i can and lowering my bids. I want to increase the traffic, and find more relevant "serious" searchers at a cheaper rate! I'll let you know how my tests go.

#4 Randy

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Posted 20 May 2009 - 02:23 PM

In my experience most times it's a question of how well the ad copy and page copy meet visitor expectations. I wrote a paper on this awhile back and actually used PPC as the test cases since they're easier to control throughout. It's focus was on headlines if you believed the title of the paper, but it was really more about how important it is to maintain relevancy throughout the entire process, from Organic SERP or Ad listing to the landing page and all the way through the buying process.

If I had to guess, what you're seeing probably has to do more with those less expensive ads being better targeted to your real potential buyers than anything to do with where the ads are placed in the listing or how much you're paying for them. As an aside that's not an aside, the more general or generic your targeted terms the more general or generic your potential audience. And often PPC ads for these more general/generic terms cost more because too many don't actually look at conversion and ROI.

I often won't even bid on those glaringly obvious, way too general terms. There are simply too many people who are not in the right mind set who might search for something using those general phrases. And if I do bid on them I make sure I'm doing it as either an exact match or include some negative stuff to keep my ad from showing up in front of certain searchers.

As a quick example let's say I was bidding on a highly competitive and expensive term like Prom Dresses because I sold high end designer prom dresses. I would either do an exact match so that my ad only shows up when that phrase and only that phrase is the input, or at the very least I'd want to set up negative matches for phrases like Cheap Prom Dresses, Discount Prom Dresses and so on. After all, nothing I sell is cheap or even inexpensive. So why would I want to pay for traffic that stands zero chance of ever converting for me?

#5 Bri

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Posted 21 May 2009 - 09:40 AM

Thanks for your Insight Randy. I have also found it to be the case with generic terms, and have had so much more success with more targeted keywords/phrases.

Cheers!

P.s. Can you give me a link to the article you wrote?

B

#6 Randy

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Posted 21 May 2009 - 09:57 AM

I'll have to find it and PM it over to you Bri. The project I originally wrote it for has changed significantly since then and it's going to end up being at a completely different place. Long story short I'm not sure where it's at right now, other than I know it's not where it's going to end up being.

#7 Bri

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Posted 21 May 2009 - 10:02 AM

QUOTE(Randy @ May 21 2009, 10:57 AM) View Post
I'll have to find it and PM it over to you Bri. The project I originally wrote it for has changed significantly since then and it's going to end up being at a completely different place. Long story short I'm not sure where it's at right now, other than I know it's not where it's going to end up being.

no worries if you can't find it Randy. Thanks!





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