Research by Atlas DMT finds that, in some cases, lower-ranked keywords had higher conversion rates.
The effect of rank on conversions from paid search listings differs depending on keyword volume. That’s the conclusion of the latest Digital Marketing Insight (DMI) research from aQuantive’s Atlas DMT.
"Many have hypothesized that conversion rates might actually rise at lower ranks, theorizing that users clicking on lower listings are more qualified prospects, but this approach turns out to be neither entirely right nor wrong," said Young-Bean Song, director of analytics for Atlas DMT and its research and education arm, The Atlas Institute.
The research confirmed that, for high-volume keywords, conversion rates generally fall as rank decreases. However, when looking at the bottom 80 percent of keywords based on click volume, conversion rates often converted at higher levels than the top ranked listings.
For example, at Google, ranks 8 through 10 for low volume keywords had about 30 percent higher conversion rates than the top ranking. While at Yahoo’s Overture, low volume keywords showed sustained conversion rates across all top 10 ranks.
"Every marketing medium has the fundamental trade-off between volume and efficiency, and search is no exception," Song said. "Understanding factors such as rank on traffic and conversion provides marketers tools to better control costs, while maximizing targeted traffic and sales."
Atlas DMT, an operating unit of aQuantive, released research in July focused on how paid search engine rankings impact traffic. According to that research, there is about a ten times difference in potential traffic between the first and tenth paid search position rankings. Google showed a 40-percent drop between the first and second positions, while the difference on Overture was not so pronounced.
Utilizing data from Atlas Search, the company’s integrated search marketing and campaign management system, traffic representing more than 41 million clicks and 400 thousand keywords during July and August 2004 were analyzed. The analysis took into consideration advertisers’ "primary" conversion metric, which for most represented online sales, but also included conversions such as lead acquisitions, account sign-ups and requests for information.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.
Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.
With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.
September 23, 2014
September 30, 2014
1:00pm ET/10:00am PT
October 23, 2014
1:00pm ET/10:00am PT