Google Reveals Top Position Bid Estimates

September 2, 2011

This week, Google announced the addition of a new metric in AdWords called top of page bid estimates . Comparable to first page bid estimates, this will give advertisers an idea of what bid it would take to bring a specific keyword to the top positions over the organic search results.  Of course, CPC is only one factor in ad rank. Quality score and other factors such as budget, account settings and competition play a part, but this will certainly give advertisers a good idea of what to aim for in their bidding.

If you know that a keyword historically converts better in a top position, this could serve as a guide to where your keyword bid should be.

In a recent test for one of our clients, we decided to increase CPCs to push ads into a higher position for one of our top ad groups. As you can see in the graph below, over time we saw that as average position moved closer to the top 3, the higher visibility caused our click through rates to increase dramatically:

CTR-AP graph

With the increase in CTR, we were getting much more traffic from the same impressions and our total conversions spiked:

CTR graph

Average CPC did increase, which increased our total cost, but the additional conversions were achieved within our ROI goals, so this strategy was very successful and profitable for this client. Try it out and let us know your results!


Written by Frank Andolina, Paid Search Campaign Manager II