Conversion Rates Do Not Vary Much?

Today, I read an interesting post from Google blogspot.  It involved a question from many advertisers and marketers.

How much conversion rates vary with ads position?

I have a same question everytime I setup a new campaign or tweaking my existing adwords campaigns.  No doubt as a marketer, we keep looking for a breakthrough to increase conversion rate. Let’s say I have 100 visitors to my website and 5 visitors took action like subscribing to my newsletter or download free item. With that, I have 5% conversion rate.

Now, imagine 8 visitors took action instead of just 5. I will have 8% conversion rate. This merely 3% increment means 37.5% improvement from my previous conversion rate!

Now, let’s go back to blogspot post. Google adwords insider team did a very good studying on this subject. They found that Conversion Rates Don’t Vary Much with Ads Position.

Here is the actual statement from the post:

We have used a statistical model to account for these effects and found that, on average, there is very little variation in conversion rates by position for the same ad. For example, for pages where 11 ads are shown the conversion rate varies by less than 5% across positions. In other words, an ad that had a 1.0% conversion rate in the best position, would have about a 0.95% conversion rate in the worst position, on average. Ads above the search results have a conversion rate within ±2% of right-hand side positions.

For more detail of the report, go to http://adwords.blogspot.com/2009/08/conversion-rates-dont-vary-much-with-ad.html

Anyway, I will still look at the possibility to cut of cost per click with the ads position.

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