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Insight/ Online Media

Is paid-ad rank mostly irrelevant?

Google kicked off a debate last month when one of its chief economists essentially advised marketers not to worry about the ranking of their pay-per-click search advertisements. Hal Varian, writing on Google's Inside AdWords blog, acknowledged that the higher up in the rankings a pay-per-click ad appears, the more clicks it tends to receive. But he also said that ad position offers “very little variation in conversion rates.” What should marketers make of this analysis?

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