The Hierarchy of Google Adwords: A Strategy

If you’ve frequented our site before, you likely know that we’re avid users of the Google Adwords platform. We love it! Over the years, we’ve started to notice some interesting trends on Adwords in regards to clicks, conversions and ad positioning. As I’m sure you are all aware – certain ad positions will convert better than others. In this article we’re going to take a look at what ad positions specific customer types are clicking to help you better tailor your ad positioning to their needs.

Some of what we’re about to share may seem like common sense, but very few Google Adwords advertisers are taking advantage of this. Use this strategy in your Adwords campaigns and you’ll see some great results. Let’s get to it.

Customer Type Red: I Know What I Want, and Need it Now

This customer type is ready to spend. They are looking for a quick and easy solution to their problem. A huge portion of your conversions will come from this type of customer. These people are most likely clicking one of the top two ad spots or top three organic result listings.

Ads that fit in this spot:

If your selling a high-end product or service, and can keep up with high-demand, this is the spot for you. Businesses like mortgage brokers, plumbers, carpenters, electricians, dentists, photographers etc. can make a killing being in these two ad spots.

If your ads are not in this spot:

If this sounds like the spot you’d like to be and aren’t – for example you’re ads are falling into the 3-10 position range, you’re wasting your money. As you’ll see later in this post, ad positions 3-10 are generally not going to convert nearly as well. You may be spending less per click, but you’ll be paying more for conversion.

Our suggestion:

Start a new campaign, get hyper-targeted with your keywords, up your bid and work on your quality score. We’ve written many posts on improving your Google Adwords quality score – so take advantage. So in short, go through your normal campaign process, and knock it out of the park. Then up your bid so you’re landing in the 1-2 ad position range – and track conversions. I’ll bet that your conversion per click will go down, despite you paying much more for click.

Customer Type Green: I’m Shopping Around, I Might Buy With a Great Offer

This customer type is doing their research. They are looking for a service like yours, but are not in a rush to get it. They can be swayed to convert, if you give them a really compelling offer or easy way to take advantage. They are likely searching through organic results, and your ad catches their eye. Some of these customers convert, but a majority of them will click your ad, visit multiple pages on your site, including your contact page – they may jot down your number, then they move along. Green customers are likely to click ad positions in the 3-6 range.

Ads that fit in this spot:

If you have a compelling offer, and an easy, conversion focused landing page that has great success – you can ride this ad position and see some positive results at a lower cost than positions 1 and 2. Alternatively, if you’re in a position where you want sales, but cannot handle too much volume – this may be a good spot for you. If the keywords you’re targeting are relevant, but you’re offering a slightly different product than the ads you’re around – this may be the spot for you (for example if your offering a mortgage broker guidebook instead of mortgage broker services). Finally, if you’re in the business of developing and nurturing relationship with your clients (for example, building an e-mail list) – you may want to hang out in these ad positions instead.

Our suggestion:

If your ads are sitting in this position and you’re a happy camper – all the power to you! Many Adwords advertisers can see great results in these positions, and depending on your competition you could literally pay 10% of the price per click as your competition and still see some really solid positioning and results.

Customer Type Orange: I’m Browsing, Your Ad caught my Eye

This customer type is not interested in buying right now. They are in no rush to get your services, they are just browsing to see what’s out there. These customers will click your ad, look at a page or two max, then exit – you’ll see high bounce rates from these customers. Orange customers are likely to click ad positions in the 5-10 range or even page 2 results.

Ads that fit in this spot:

You’re in awareness country. Like a billboard on the side of highway, you’re there for awareness and the occasional click. These ad positions are great for branding and getting your name out there. If your budget is small, you can sit in this ad spot for as little as $0.05 a click, which is a hell of a lot cheaper than a billboard out on a highway… and much, much more targeted.

Our suggestion:

Being an Adwords bottom feeder is not a bad gig. Your paying a fraction of the cost as the big wigs, and still getting qualified traffic and awareness. If you got a great, conversion focused landing page, you could even see some good conversions. If you’re having a slow month, amp up your bid to take things to the next level.

The Caveat

With all this said, you have to be aware that occasionally green and orange customers will click position 1-2 ads, and they will cost you some dough… but over the long run, if you use this Adwords strategy for your business type – you should see some good success.

What are your thoughts on ad positions and buyer types? Share your thoughts in the comment below.