Why The #1 Ad Position in PPC is Not Always The Best
Posted June 16, 2016
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Business owners spend a lot of time and money to dedicate their marketing strategy to getting the first place slot on everything from search engine results to paid per click ad services. The necessity for being the first business a searcher sees has been pounded into our heads time and time again, but is that #1 position really that necessary?
The reality is, sometimes that first place position isn’t always the best option and sometimes doing whatever it takes to get that first place spot can actually hurt your business success instead of help it. Although that first place position will almost guarantee you will get the most exposure, it doesn’t necessarily mean it is the best investment for you and your company.
Any successful business owner and operator knows that success all comes down to the ROI. For every bit of budget you spend, you want to ensure that the return on your efforts will go above and beyond paying you back for the investment. So in general, the first place ad position will be the most expensive of all the placements on the list.
When Isn’t the #1 Ad Position Best?
Many businesses believe that if they can get in the first place slot in the relevant ads listed, it will mean they will get the most business. But it is important to remember that the number of eyes that see your ads does not always equal the number of people who click on your ad and move through to your website and make a purchase.
Whether or not it is right for you to fight for the first place spot will largely depend on what your marketing budget is. Remember who your competition is, and if you have large, national powerhouses of companies in your space, those are the marketing budgets you’ll need to fight with in order to get that first place slot. What presses the upper limits, or even exceeds, what the top of your budget is usually is only pocket change to those big businesses, giving them much more freedom to bid for and purchase those premium spots.
Those big businesses also have a lot less to lose than what your small business puts on the line. If you decide to dedicate your entire marketing budget to getting your ad in the first place marketing slot, you’re not going to have any means to do any other marketing, or at least marketing worth doing. For those big businesses, they may have millions of dollars to dedicate to marketing alone. That means they can get the first place spot, run commercials, have a digital marketing strategy, and get celebrity endorsements. Even if you manage to buy out their first place placement, you’re limiting your customer base to one avenue.
Consider what your potential ROI could be and if it is really worth the money and effort to fight the big corporations for the #1 ad position. If you spend too much money on the placement and don’t see the business you were expecting, you don’t want to put your company in a financially instable position. Unless you can comfortably purchase the first place position in an ad placement without jeopardizing your potential profit and the company alone, you are probably better off letting the #1 place go to someone else.
Can I still be Successful If I’m not #1?
If you’ve let your sights on #1 slip away, you’re not also letting go of potential profits with your company. You can still see success in positions 2, 3, 4, or 5, often at a fraction of the price. If you’re consistently finding your ads in positions 2 or 3, that means they are still appearing in the search results page. Your ads will still be seen, clicked on, and you will still have an increase of business.
It is important to remember that you don’t want to waste money. If you are caught in a bidding war for a top slot with a large company, they will almost always have the funds, means, and dedication to take that premium slot. If you continue to bid against those large wallets, you will either lose or pay something you can’t realistically afford and still be successful.
Remember that when people do a search, they rarely select just one website to visit. So even if you aren’t the very first on the list but find yourself as 2nd, 3rd, or 4th, those searchers are still very likely to click on and visit your webpage.
When bidding for an ad slot, it is extremely important to know your limits and stick within them. Your business’s profit is the most important thing to your business’s success, so consider what the highest amount you could bid is while still making a profit. Even if the bid goes slightly over that budget, let it go. You can’t afford it, at least not yet.
As your profit increases, so can your budget. Keep the increases relative to the amount of profit you’re making so that you don’t get too high with your bids. Wait until you have the profit behind the budget before you start tackling the higher ad placements.
Remember Your Goals
It can be tempting to go straight for the number one slot, especially since it has been constantly pushed as the best way to increase your business. But before you get trapped in a bidding war, consider what your goals are and if they can be done from a lower ad position. You can still increase visibility and profit from 2nd, 3rd, or 4th place.
Remember, the first place spot isn’t a guarantee for success and a lower position isn’t a death sentence. Stick to what you can realistically afford to meet your goals.
