If you have your conversion tracking setup properly, then you should be able to clearly observe the variation in conversion %. From my experience now in trialling this approach for over 6 clients in the last few months, I predict that you will see a lowering in conversion, but in most cases not as far as you think and you will likely also see a drastic increase in the visitors, and conversions you are achieving within your limited budget. If you suddenly find you are underspending you daily click budget, then perhaps tune up the Max CPC / bid a little until you comfortably fill your budget, and observe the change in cost per conversions.
if you are in the situation described above, where you have a small budget you are spending Google Adwords each month, and a broad market you are targetting, this is highly likely to dramatically improve your return on ad spend, and potentially transform Google adwords as a channel to market for your business.
Clicks achieved in lower ad positions don't necessarily convert at a lower rate!! As with everything in online advertising....don't hold on to past prejudices about what you think works - just try it out and see what happens!
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