The Illusion of Profitability
A study published in 2009, has found that in sponsored search markets, the correlation between high clickthrough rates and profit, is not necessarily linear. It finds that when we make the assumption that if a keyword has a higher clickthrough rate than another keyword, it is not necessarily more profitable/desirable. More specifically, the study finds that the most profitable keywords are the ones in the middle, not the top. These findings could greatly impact how people bid for spots. Companies could find that saving money and bidding on lower-ranked spots could lead to higher exposure for less than they think they need. I think it’s very interesting and worth a gander.
https://pubsonline.informs.org/doi/pdf/10.1287/mnsc.1090.1054