Any downside to lower ad position?

[Victorious]

Hi,

I have a campaign running for a few days, first PPC campaign I'm having some small success with!

(This is on Adwords btw)
In an effort to reduce CPC I've set my position pref. for some keywords to 2+ or 3+, while leaving my max CPC bid the same ($2). Now I'm paying around $0.9 per actual click and my ads show in position 2+, where they used to show on position 1 usually. My CTR is still fine.

Questions:

A) Will being in position 2 or 3 have any negative effects further down the road? The obvious one would be CTR but that doesn't seem to change much in this case.

B) should i start gradually reducing my max CPC bid? I've read this at multiple blogs, but won't this push my ad down? I guess I just don't fully understand the mechanism of slowly decreasing max CPC bid and why it should work.

Thanks in advance!!

 

[GrindTim3]

Don't start reducing your CPC bid unless you have a good CTR. In this case, im assuming you have a decent CTR so you can go ahead and reduce it little by little. Being in a lower position can reduce your volume, however you may get more quality clicks. It basically reduces the amount of "impulse" clicks.

Hope this helped.

 

[Jardini]

Google will reduce the bid for you overtime, don't lower it, you will lose your position. I like to keep my bid 10 to 15 cent over what I am currently paying.

I personally always aim for position 3 unless the keyword is extremely profitable and I want more volume. Position 3 usually gives me the best ROI.

A lot of people search for a keyword, they will click on the first link they see without reading the ad, this is why position 1 and sometimes position 2 have a lot junk clicks.

Go to a computer lab, library or internet cafe, observe how people use google, you'll see what I mean. Search, click without looking, especially guys