Click Tracking: How Users Click on Results, Natural Versus Paid
By now, you should be convinced that you want to be on the top of the SERPs. It never hurts to be #1 in the natural search results.
In a bit of contrast to that, data shows that you may not want to be #1 in the paid search results, because the resulting cost to gain the #1 position in a PPC campaign can reduce the total net margin on your campaign. A study released by AdGooroo in June 2008 found that:
Bidding for top positions usually makes financial sense only for high-budget, brand-name advertisers. Most other advertisers will find the optimal position for the majority of their keywords to lie between positions 5–7.
Of course, many advertisers may seek the #1 position in paid search results for a number of reasons. For example, if they have a really solid backend on their website and are able to make money when they are in the #1 position, they may well choose to pursue it. Nonetheless, the data from the survey suggests that there are many organizations for which being #1 in paid search does not make sense.
Even if your natural ranking is #1, you can still increase the ranking page’s click rate by having a sponsored ad above it or in the right column. The AdGooroo survey showed that a prominent paid ad on the same search results page makes your #1 natural ranking receive 20% more clicks.
Distribution of Search Results and Traffic
To start breaking this down a bit, Figure 1-10 shows the screen real estate occupied by the ...