ROI on Incremental Position Gains
Posted by Melanie Phung on Monday, August 21, 2006 at 11:17 pm
In the last 12 months as an in-house SEO, my Holy Grail of Web analytics has been quantifying what each gain in position (i.e., ranking on results page) is worth. It’s a hard thing to just test since there are so many variables beyond your control. Clearly the first position is more valuable than the third, which is more valuable than the seventh. But how much more valuable?
Each rise in rankings gets exponentially harder the closer you to the top. So, would my goals be better served if I prioritized moving a listing from the #11 spot to the #10 spot, or should I try to get a current #5 listing to move up position #4? Or what if I tried to get a bunch of Page 3 listings onto Page 2 — would half a dozen pages on the second page be worth more than a one position increase on the first page? If my optimizing a page a certain way moves it from the #5 spot to the #3 spot but causes a 1% drop in conversion, is it worth it? What about from #4 to #3 — would it still make sense to sacrifice one point in conversions to go after traffic?
Thanks to the AOL snafu, SEOs now have a little more visibility into search user behavior.
It should come as no big surprise that 50% of searches result in clicks on the top 2 results. That still doesn’t answer any of the questions I posed above.
But by analyzing AOL’s treasure trove of user data, and based on some data shared in EarnersForum.com the folks over at SEO Black Hat have come up with a tool that attempts to quanitify the value of each position change (in terms of traffic, not $).
From the forum:
Based on 9,038,794 and 4,926,623 total clicks:
- Ranking Number 1 receives 42.1 percent of click throughs.
- Ranking Number 2 receives 11.9 percent of click throughs.
- Ranking Number 3 receives 8.5 percent of click throughs.
- Ranking Number 4 receives 6.1 percent of click throughs.
- Ranking Number 5 receives 4.9 percent of click throughs.
- Ranking Number 6 receives 4.1 percent of click throughs.
- Ranking Number 7 receives 3.4 percent of click throughs.
- Ranking Number 8 receives 3.0 percent of click throughs.
- Ranking Number 9 receives 2.8 percent of click throughs.
- Ranking Number 10 receives 3.0 percent of click throughs.
- The rest of the Long Tail (ranks 11-1000) = 11.3 percent of click throughs.
To put it another way:
- Search Engine Ranking #1: 2,075,765 clicks
- Search Engine Ranking #2: 586,100 clicks = 3.5x less
- Search Engine Ranking #3: 418,643 clicks = 4.9x less
- Search Engine Ranking #4: 298,532 clicks = 6.9x less
- Search Engine Ranking #5: 242,169 clicks = 8.5x less
- Search Engine Ranking #6: 199,541 clicks = 10.4x less
- Search Engine Ranking #7: 168,080 clicks = 12.3x less
- Search Engine Ranking #8: 148,489 clicks = 14.0x less
- Search Engine Ranking #9: 140,356 clicks = 14.8x less
- Search Engine Ranking #10 147,551 clicks = 14.1x less
- Search Engine Ranking 11+: 501,397 clicks
If you then factor in market share owned by each engine, you can approximate how many clicks your various positions are getting — or at least that’s what SEO Black Hat’s tool tries to do. (Hint: you need to enter the frequency number Overture gives you for your particular keywords, no commas in the number.)
However (a big HOWEVER) AOL’s organic results don’t even show up above the fold on my screen, AND AOL users tend to be less tech savvy in general. Since the top of AOL’s results pages are more heavily PPC laden than Google’s, and because it’s been proved that AOL users’ search behavior differs from that of searchers using other engines*, I wouldn’t extrapolate too much. The data provide insight, not indisputable truths.
* Needs citation.









