Conversion rate vs. ad position in Google AdWords

Posted by Josh on Friday, February 24th, 2012.

While it’s obvious that ad position effects cost, does it effect conversion rate? For example, does the top position AdWords ad get a higher percentage of clicks turning into conversions than an ad further down the page? Google has conducted studies and developed numerical models that indicate that if such a relationship exists, it is very small (about 5%). Google’s chief economist also points out that there are many confounding factors, which as an advertiser means that there are many bigger issues to tackle than to worry much about how conversion rates vary with ad position.