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Ad Positioning in PPC Marketing

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The number of available positions varies depending upon the search engine and even upon the resolution of the searcher’s computer screen at times, but it is generally limited to five to eight ads.



The top three listings are the ones with the highest amount of traffic. For one thing, these top three listings are more likely to wind up in the syndicated listings (that is, those that are shown on partner sites, so you get extended reach of your act without additional payments).



However, the interesting aspect of this is that the higher you are listed, the lower conversions to sales/actions you will have.



As you go down in the, positions, the conversions of clicks to sales/actions will increase and the bid prices will decrease. However, the overall amount of traffic will go down.



Your goal is to find the golden middle. If your ad appears too low in the listings, your traffic will vanish. However, occupy the first position and you’ll wind the paying for a lot of wasted clicks.



Positions three to six may be more effective for a PPC ad campaign because people often click on the first listing out of curiosity, rather than true interest or intent to purchase.



Therefore, the top-ranked position in PPC ad listings often receive a number of clicks that don’t necessarily come from someone who is already interested in the product and is ready to purchase it.



By being in the second or third position, you will receive clicks from visitors requiring more information than they received from the first website or those looking for comparisons on features and pricing between your site and the others.



A visitor will often click on the first ad, find out all they need to know about the product and its price there, and then click on the second ad to comparison shop.



They may or may not then move on to the third ad, or go somewhere else for further comparison shopping, if they are truly interested in purchasing.



However, if the price of the product is roughly the same between the first advertiser and this second one, the visitor will often purchase the product right then, on the second-listed PPC, ad site, rather than going back to the first site.



If the visitor does return to the first site to purchase, the profit margin on that sale is slightly less than it could have been, because the conversion of this visitor into a buyer took two clicks rather than one, so the advertiser has to pay for two clicks at whatever price the keyword is currently bidding at.



For many products, this may be a matter of just a few cents, but some keywords have bids of a number of dollars, so extra clicks for no reason are not something you want.


Bid Gaps

Another aspect of keyword bidding that is vital to success is understanding bid gaps. Bid gaps occur when You have established a keyword price you are willing to pay based on the situation at the time the campaign was set up, and then a change occurs as the result of a bidding war or other circumstances that results your add remaining in place while the bid just below yours is much lower.



Bid gaps happen most frequently when you arc not monitoring your ad campaign closely enough.



Some search engines will automatically close bid gaps for you and third-party tools arc also available to screen for bid gaps, but you also should keep an eye out for them.



If the gap between your keyword hid and the cost for the ad listed directly underneath you is large, you arc having too much for the keyword and your ad budget may decline alarmingly before you realize what has occurred.

Keywords: Ad Positioning, ad, traffic, bid gaps, ppc, seo.



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