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Clearly it would hurt to be below the scroll or on a later page, but does #1 get more clicks than #3 using the same text?
My gut feeling has been that position 3 or 4 is a better value, but I wondered if they might even get more actual clicks (for the same ad).
When I search, my eye is drawn to those positions first.
For many KW where I run ads, I also have a high possition on the organic search and need to guess how that impacts my mix of results.
Lately, I'm getting "rewarded" with the premium spot on a lot of ads and I get tons of clicks, but it tends not to be profitable.
I think about lowering my bids, but then I'm afraid the new system will make a bunch of keywords inactive and demand more than my old bid. Kind of like playing poker, I suppose, but I don't know how to play poker!