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From the author of Strategy #3: Bid for a Specific Position

Strategy #3: Bid for a Specific Position

The bidding-for-number-one strategy can be a costly one, so it’s probably not the best bet for cost-conscious advertisers. Instead, consider the strategy of bidding not for number one, but for a slightly lower position.

The top two ad positions on Google’s search results page appear at the very top of the page, above the organic search results. These are, of course, the two most expensive positions. But you also get decent results just by showing up on the first page of the search results, even if you end up in the right-hand column or “below the fold” lower on the page. These positions—typically 3 through 6—will give you a good click-through rate (CTR) at a much lower CPC than you get with the top two positions.

Key to this strategy is fine-tuning your bid once your campaign is running, to obtain the exact position you want. If your average position is below your target position, increase your CPC bid for that keyword; if your average position is above your target position, decrease your bid. It’s simple positioning, even if it takes a bit of effort.

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