Consumer Trust and Google Adwords
February 15, 2007 – 5:17 pm | by nandakbConsumer Behavior on Google Adwords
I am bit surprised to see Microsoft adCenter advertisement appearing on Google Adsense site. 
Recent study Search Marketing Shows Strength in 2006 by searchenginewatch.com quotes that Microsoft Adcenter revenue has jumped to 68 percent, compare to 29 percent of last year 2005. But Google! still rule the search engine advertisement market accounts 96 percent, followed by yahoo 82%. Advertiser who uses Google Adwords also advertises in Yahoo. But marketers bet more money on Adwords than Overture.
Is there any reason why Google is on Top?
Google traffic provide more CTR (click through ratio) and higher conversion rate because,
Google audience are more target oriented, looking for a way to accomplish their task. (such as seeking some information, looking to download something and etc.)
Google visitor have positive attitude towards Google listings.
Buy from First Ad
Nico Brooks’s How Search Engine Rank Impact Conversions (Published in American Marketing Association, 2005) article highlights few interesting points.
The conversion potential between position one and position two ad varies significantly among Google and Yahoo listings.
In Google Adwords listings, advertisement placed at top most position (#1) has 100% conversion potential. Where position two ads attract only 54.5%
In yahoo listing, conversion difference between position one and two ad is 27% (100% and 73%)
This Buy from first ad attitude might have been adopted from consumers perceived thinking about Google Search result. 92% – 96% of the consumer think that Google Result is more accurate and relevant compare to other search engine. Which eventually influence them to click and buy from the first ad listed by Adwords.
Google AdWords |
|||
| Position | Click Potential | Conversion Rate | Conversion Potential |
| 1 | 100.0% | 100.0% | 100.0% |
| 2 | 59.8% | 91.1% | 54.5% |
| 3 | 47.5 | 75.1% | 35.7% |
| 4 | 39.0 | 72.4% | 28.2% |
| 5 | 34.8% | 60.3% | 24.1% |
| 6 | 37.3% | 71.9% | 22.5% |
| 7 | 24.05% | 67.6% | 16.2% |
| 8 | 20.0% | 64.45% | 13.4% |
Yahoo Search Marketing |
|||
| Position | Click Potential | Conversion Rate | Conversion Potential |
| 1 | 100.00% | 100.0% | 100.0% |
| 2 | 77.7% | 93.9% | 73.0% |
| 3 | 58.8% | 101.4% | 59.6% |
| 4 | 41.8% | 96.2% | 40.2% |
| 5 | 30.2% | 94.8% | 28.6% |
| 6 | 24.0% | 92.4% | 22.2% |
| 7 | 18.0% | 88.4% | 15.9% |
| 8 | 14.1% | 93.1% | 13.2% |
It is worth to bid more for top most position in Google Adwords. There is an Search Marketing Tool , which can help you managing the Ad position. That tool may not work with Google adwords.
1 Trackback(s)