PPC Ad Position & Direct Bookings
Managing Pay-Per-Click campaigns can be complex, especially with so many variables to look after and optimize. But one of the most asked about metrics is ad position, which is simply the location of your PPC ad on the search engine.
Typically, positions 1-3 are shown at the top of a Google search:
While the other positions are shown on the right hand side:
The position in which your ad appears is determined by a number of factors, your bid or Cost-Per-Click (CPC) being one of them. And more often than not, the higher ad positions command higher costs.
Keeping this in mind, we decided to venture out and see if ad position had an impact on the direct revenue from PPC campaigns. We looked at a sample of client accounts and analyzed a number of metrics.
What we found is that over 95% of direct revenue comes from ads in the #1 position! Most of the remaining revenue comes from ads in the #2 and #3 spot.
So what does this all mean?
First, it confirms what a lot of digital marketers have suspected; higher is better! Second, it highlights that, especially in hotel related searches, it’s very important to be visible. This means securing the #1 spot or at the very least being found within one of the ad at the top of the search page.
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