A number of pay per click advertising programs, such as Google
Adwords, allow you to choose where you would like your
advertisements to appear on a webpage.  This is often referred
to as position preference. Though important to your success,
position preference may also have an impact on the cost of pay
per click advertising. 

If this is your first time participating in a pay per click
advertising program, like Google Adwords, you may be unfamiliar
with position preference, the positions in particular.  When you
sign up for an affiliate program, you should be given access to
a map. That map should outline a number of different positions;
positions where advertisements are often displayed. In most
cases, these positions are numbered.  The number scale used by
Google is 1 to 10+.  As you may have already assumed, one is the
best position; it is often right at the top of a webpage.  As
for positions 10+, they can usually be found towards the bottom
of a webpage.  The actual positions and their numbers will all
depend on the pay per click program in question. 

With online advertisements, it is known that those shown above
the fold are often the most successful; the ones that receive
the most clicks.  The phrase “above the fold,” is used to
describe the part of a website that can be seen right away.
Below the fold is used to describe the part of a website that
internet users must scroll down to see. Since many internet
users do not scroll down to examine a whole webpage, most
advertisers try and get their ads placed above the fold.  This
is typically where positions one, positions two, and positions
three are located.  Before automatically trying to get into one
of these highly sought after position slots, you should examine
whether it is worth it.  To do this, you will want to examine
the pros and cons of trying to obtain a first, second, or third
position. 

As it was mentioned above, the biggest advantage to scoring a
first, second, or third place advertising position is placement.
These advertisements are ones that are likely to be seen
immediately, no scrolling down is required.  It is a known fact
that advertisements located on the top or in the upper left-hand
or right-hand sides of a webpage are more likely to be clicked.
As an advertiser, this may result in your ads being clicked.  If
your advertisements are being targeted to the right website,
websites that are related to the products that you are selling,
this click may end up resulting in a sale.  

Although good placement alone is enough to make many advertisers
want a first, second or third advertising position, there are
also a number of disadvantages to seeking those positions.  As
it was stated above, these positions are the ones that are most
sought after.  Pay per click programs know this; therefore, they
charge more money for those positions.  The amount of money that
you will have to pay will depend on your maximum bid.  What is
nice about many pay per click programs, including Google
Adwords, is that you are able to set yourself a daily budget.
This means that you can ask to have your advertisements
displayed in the first, second, or third place positions, even
if you are on a budget.  Once your daily spending limit has been
reached, another advertisement will take over your top position.
 In a way, this is nice because it allows you to experiment with
position preference, without having to spend too much money.

Although position preference may have an impact on the amount of
traffic that your online store sees or the amount of sales that
you make, it is important that you do not rely on it. It is
important to remember the name, position preference,
particularly the preference part.  In no way are your
advertisements guaranteed to appear in the first, second, or
third positions, but your pay per click program representatives
will try their best to ensure that they are. 

To your success,
Derek Pryde

P.S. Position preference is a popular feature that is used by
many pay per click advertisers, including those that use Google
Adwords.