The Value of Improving Ad Position

The following best practices for ad position, or ad rank, help maximize the efficiency of search campaigns.

  • The more relevant the ad, the greater the probability of achieving a high position or rank.
  • Greater relevance mitigates higher competitive bids.
  • Higher position increases the opportunity to convert searchers into customers.

 

Based on the chart below, Advertiser C, having a highly relevant ad, spends three times less to reach the number one position; as compared to the amount Advertiser B must spend to achieve the same rank.

                       Bid          CTR     Position
Advertiser A     $1.00      1.0%      1
Advertiser B     $2.00       .5%       1
Advertiser C     $0.50      2.0%      1

Factors That Influence Ad Position

  • Ad position is influenced by the relevancy and effectiveness of the ad in combination with the amount you are willing to pay per click. Focusing on relevance and effectiveness will return greater value, as these are the factors that drive higher rank and customer demand. You are effectively investing in clicks that convert.
  • Marketers have the most control over an ad’s relevance, because they control ad creative, landing pages, and calls-to-action; therefore, a highly relevant ad will perform better for the marketer.
  • In addition to the control a marketer has over an ad, Microsoft adCenter offers unique, advanced matching tools that empower marketers to select effective keywords and write highly effective creative. To learn more visit About search match types.

 

How to Improve Relevance

  • Ensure keyword to ad copy relevancy.
  • Test multiple ad copies, at least 3 per ad group, with fewer but more relevant set of keywords.
  • Write compelling ad copy
    • Put the most important information first
    • Increase the title’s relevance by including keywords
    • Leverage brand and the term "official site" in ad copy whenever applicable
    • Use power terms that are not superlatives (because superlatives will not meet editorial guidelines) such as hot, excellent, leading, wholesale, huge, etc.
  • Write strong descriptions
  • Highlight differentiating factors in ad copy
    • If low price is one of the value propositions, include the price.
    • Emphasize good deals to the user – e.g.: free shipping, free delivery, up to 70% off, stay 2 nights and get 1 free, low prices always
    • Free and new are strong words to use
    • Unique selling points need to be sold to the user in the ad copy
  • Incorporate Seasonality
    • Use words that appropriately indicate timing from the searcher’s perspective (summer, back to school, holidays, etc.)
    • Purchase cycle – consumers may use generic keywords during the research/consideration stage and brand terms when they are ready to buy
      • E.g.: during the research phase the consumer may search for “SUV”, “Convertible”, “Sports Car”
      • During the buying phase they may search for “Ford Explorer” “BMW 3.25” “Nissan dealer Newark, NJ”
    • Make sure that your ad copy is aligned to the stage of the purchase cycle.
  • Update landing page
    • Periodically check to ensure the landing pages are working and active
    • Provide relevant content that matches the query
    • Create deeper linking URLs using {param1}. Learn more about dynamic text, also called parameters. 
    • Include keywords in landing page text. By including your keywords, you'll also increase the relevance of your landing page for those keywords, which can improve your ad's position and possibly boost your CTR

 

If you have questions on this topic, please visit the adCenter Forum, and see the library of Flash tutorials on related topics in the adExcellence classroom.