Profitability of Position in Online Advertising Markets

Profitability of Position in Online Advertising Markets

When analyzing the results from search engines, most people think that the top position are the best, resulting in the highest click through rates. Though, on the contrary, it was found that while click through rates decrease when the position on a page gets lower, the conversion rate will increase, and for certain specific keywords actually is higher. Even when revenue does not increase it might be more profitable to place the ad lower on the page, since costs decrease so fast.

This also shows that people who have a bigger intention to actually purchase, are looking at the lower positions on the website.