How important is being number 1

How important is haveing the first Adwords place versus 2, 3 or 4?

[SFReader]

For Adwords ads running on the right hand side (not considering the lead placesments above the organic results), how important is the order among the first 4 or 5 places?

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?

[mark1111]

Yes, but they often don't convert as well. Many people don't want to be at the top.

[eWhisper]

All based on profit margins.

Old post of mine I like to reference when talking about ROI and position:
[webmasterworld.com...]

[SFReader]

Thank you eWhisper. That is a very useful data point.

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.

[patient2all]

I try for top of the right hand side or bottom if there are 6 or less ads.

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!

patient2all

[bmsd33]

I think you need to look at the competitive environment and your ROI requirements. My general goal is to be "above the fold" so I manage most of my ads for an average position of 3 or 4. I like to be the first one on the right if I can make it work. I generally don't worry about the ubiquitous Amazon, Ebay, Bizrate, Shopping.com, et al ads. They can be above me because I think people are used to them and look for something different. I also look at who is above my ad, and if that seller has a lesser deal or their web site is amateurish I don't worry too much. Even though my client's natural search results may be on the same page or even on the same line, I run the ad: it shows up on Google partner sites and most still make ROI. Every product category is different. I have seen some products that will sell profitably in #1 while I have seen others sell on the second page of results. It's all tracking, trial and error.

[Jon_King]

I missed that original post by eWhisper. That post should be part of the Universal Book of eMarketing.

Every single visitor to WebmasterWorld should memorize it verbatim. Do we have some great minds here willing to share or what?

[ember]

Seems people will just click the first thing they see, whether it is relevant to their needs or not. Lower spots can result in fewer but more relevant clicks.