No one questions the fact that an ad in the #1 position in paid search gets more clicks than its competitors. But think twice before you go all out to get there.
Studies show that the #2 position often gets higher conversions. While searchers tend to click on the first ad indiscriminately, they then get more selective as they go on, especially if the first attempt didn’t meet their needs. Consequently, lower positions tend to get fewer clicks but higher conversions.
Measuring your paid search conversions for each ad group will allow you to determine the best bidding strategy for you. Once you know your conversion rate, calculate your breakeven cost per click, and use that to guide your bids.
