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Adwords ad position

Discussion in 'Adwords' started by manpreet, Apr 25, 2017.

  1. manpreet

    manpreet Regular Member

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    I'm trying to understand how adwords are positioning and pricing my recommended bid price:

    At the moment my current bid is at 0.15 for this one keyword
    It says recommended bid is at 0.33
    Its say the current position for my ad is below second page
    I have put in google the exact keyword and can see that there is absolutely no ads on page one
    On page 2 at the bottom there is one ad from a competitor
    On page 3 there is the same competitor for same ad

    In this case does the competitor create several bids or somethin the ad is the exact same so i dont understand. Also i dont understand why there are no ads on page one as there are usually for other keywords
     
  2. LucidMarketing

    LucidMarketing Regular Member

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    Position of your ad relative to a competitor is determined by multiplying your QS with your bid. So a QS of 6 times a bid of 15 is 90. Any competitor with the result of that multiplication higher than you will be generally ranked higher than you. This means that a competitor with a QS of 8 only needs to bid 11.25 to outrank you.

    Recommended bids are based on historical data. Everything changes all the time, from everyone's QS (calculated in the background to many decimals), to who is currently in the auction and of course bids, some of which are automated if the advertiser selects that option. So the system cannot accurately tell you to bid a certain amount to achieve a certain result. It is however a good indicator in most cases.

    Those are the basics of understanding how the system works. As with many other things, it's a bit more complicated than that. But all you need to know is understand the basic concept.

    The recommended bid by the way is an estimate, based as said earlier on historical data but also to get you in the first few spots (not just the first page, but near the top) and based on an average QS of 5.

    What this means is that if the estimate is 0.33 as in your case, the ad rank needed is 165 (33 x 5). If you bid only 0.15, even a QS of 10 would barely get you there. Since you can assume some competitors having QS of 7 to 10 and bidding 0.33 or more (I call this estimate the going rate), you are further behind and why you rarely are on the first page.

    Now, Google is under no obligation to show ads or even show ads at the top. That's where the more complicated part comes in. If they don't think there's money to be made, they just won't show an ad. That's the whole point of the QS system. There's also available inventory to take into account and a bunch of other variables but essentially, for the search term you entered, the system determined there was no reason to show you any ad. As you went to the second page, it decided that maybe that particular ad would be attractive but only at the bottom of the page (you probably used a broad term with little commercial intent). Same for the third page but there probably wasn't enough inventory to show more ads at that moment or not enough that qualified.

    The same ad appearing on successive pages has nothing to do with how the advertiser is bidding. Being the same ad however likely points to them using just one ad.
     
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  3. manpreet

    manpreet Regular Member

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    Thanks for the reply...first time ive seen such a detailed reply and bang on to the point