Thursday, 20th August 2009, 09:05:13

The position of pay per click (PPC) advertisements does not have a major effect on conversion rates, an expert has claimed.
According to Google chief economist Hal Varian, the firm's statistical model shows that there is "very little variation" among the same ads when they are placed in different locations on a page.
He claimed that on pages where there are 11 ads shown there was less than five per cent variance in conversion rates.
In the Google AdWords blog, Mr Varian explained that this means if the best-placed ad gets one per cent conversions, the worst will get 0.95 per cent.
He noted that on sites with a variety of different ads, there are greater fluctuations.
However, the expert attributed this to the fact that ads in the prime locations on a page are often higher quality.
Earlier this month, a study by ClickZ.com revealed that the potential partnership between Microsoft and Yahoo! is unlikely to have a significant impact on PPC spend.
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