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Full Version: Google AdWords: why bidding for #1 isn't the best solution
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Quote:...top position in Google Ad listings is not necessarily the best position.

There is no relationship between the position of an advertisement in the Google Ad listings and the chance of that ad being clicked on. Bidding more per visitor in order to get a higher position will not get you more visitors. The number one position in the listings is not the best position. No ad position is any better than any other. The factor which has the most bearing on your chance of being clicked on is the text in your ad, not the ad's position...

full article: http://www.imediaconnection.com/content/12991.asp
Another study agrees that bidding for number 1 is STUPID

Quote: Bidding for the highest positions on search results pages may not be the best use of marketing dollars for most online retailers, according to new research from AdGooroo, an online market research firm.

AdGooroo’s proprietary search index—an analysis of the correlation between cost-per-click, click-through rates and average position on Google AdWords for 333 search phrases—found that bidding for the highest positions on search results pages is profitable only for high-budget advertisers seeking to maximize brand awareness...

full article: http://www.internetretailer.com/dailyNews.asp?id=27002