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A lot also depends on your inventory level, product breadth, etc.
Number of impressions won't necessarily go up, unless you were appearing on page 2+.
I think the biggest affect the bid increase will have is that your clicks will cost more...if your inventory is good and the keywords you're bidding on are relevant, you could see an increase in the number of conversions. The question you need to consider is whether or not it's worth the extra money to gain position over someone else. If your ads are displaying with others that are totally unrelated to your product, there's no sense in out-bidding them.
Emphasis on the word scan - you want to make sure your ad stands out in some way. So take a look at what your competition is writing, and make sure your ad title REALLY stands out. And you also want to make sure the rest of your text is really focused on what you're offering. If I'm looking for something specific, I'm much more likely to click on the specific ad that mentions what I'm looking for (and has an ad that relates well to it - as opposed to one using dynamic keyword insertion for anything that gets typed into the search box)
This can be affected by a lot of different factors including products, pricing, competition etc but it is certainly true that the top spots are not always the best. You will find you get a lot more traffic in a higher spot but there are many factors determining how much of that traffic will convert on your site. .
I have always found it best to experiment with ad positioning to find the point where you can retain the highest level of traffic but whilst maintaining good conversion rates and ROI.
It is true the higher positions will bring in higher traffic but it depends on how much of this traffic converts as to whether it is the best position for your ad. For example you may find the term you are bidding on is used a lot for research purposes and so you may find lower conversion rates e.g. users just browsing or visiting the top 3 ads to compare offerings. Unless the 1st site offers some kind of incentive (e.g. exclusive product, better service, better pricing etc) for the user to return to them after comparing other sites then the user is likely to purchase from the last site they visit which means the top spot ad is likely to see lower conversion levels.
Sometimes it is better to go for a lower ad position to as at this point users maybe closer to actually making the purchase as they have already compared other sites and so although traffic levels are likely to be lower, the conversion rate is likely to be higher as more of the non buying users will have already been filtered out of the traffic e.g. people who are just browsing.
Position 1: 100 conversions @ $100 CPA
Position 2: 80 conversions @ $75 CPA
Position 3: 70 conversions @ $65 CPA
Position 4: 55 conversions @ $50 CPA
Position 5: 45 conversions @ $45 CPA
Position 6: 40 conversions @ $30 CPA
So what is the optimal position? Well, it depends on how much each conversion is worth to you. If each conversion is worth $50 then position 6 is going to be the most profitable. If each conversion is woth $300, then position #1 is going to be most profitable. Chances are if you are testing for these positions though it falls somewhere in between $50 and $300. The key is to find the sweet spot that is most profitable for each keyword.
Also, remember to test different ads. Often times I will keep an ad that has a better CTR even though it has a slightly lower conversion rate since it is still returning a positive ROI.