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Wednesday, 19 July 2017

Google Literally Made More Money By Showing Fewer Ads

We looked at click-through rates on desktop search only (excluding mobile and handheld devices) during the 12-month period before and after the change in ad placements on Google desktop search results. The aim was to see whether removing right-side ads, adding more ads above organic results, and then expanding the ad size had a significant impact in the long run.

Here's what we found:

Position Change in CTR
1 32.56%
2 14.79%
3 72.44%
4 51.85%
5 -7.56%

For position 1, a 32.56% rise in CTR means that if previously 10,000 searches on a keyword resulted in 577 clicks, they'd now deliver 765 paid clicks. If advertisers were paying $1.00 per click, then for just that one keyword, this represents a $188 rise in revenue for Google. If you multiply that across the billions of searches on Google each month, the resulting increase in revenue from clicks on just 1 ad unit is eye-wateringly high!

See the full study here.

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