DM News: Study: Search Rank Drives Traffic

Marketers knew that higher search listings were a good thing, but a study done by aQuantive's Atlas Institute shows just how much an effect relative placement has in paid search. Every place down from the top listing generated an average of about ten percent less response. This finding may invalidate the common assumption that the top three placements garner a disproportionate share of the results even relative to their placement.

Relevance was also an issue. Where Google's AdWords program factors in relevance, Overture's program does not, ranking listings solely on price paid. Google's drop in response from the first to second placement was 40 percent, with Overture's showing a drop of about half that. Presumably, the better response in the top placement on Google had to do with the fact that the placement earned that top spot in part due to previous performance, which suggests a higher relevance.