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can someone explain Adword's average position system

Discussion in 'Google AdWords' started by wingdude, Dec 27, 2004.

  1. #1
    I will soon start my Adwords campaign so I decided to dive in and try out their max. bids tool. I was a bit confused however by the way google calculates your average position. My specific questions are:

    1. What does your average position mean.
    2. How can you get an average position of a ' point soemthing number' like 1.3

    Thanks in advance
     
    wingdude, Dec 27, 2004 IP
  2. JonahViaKeyboard

    JonahViaKeyboard Peon

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    #2
    1: Average position is proximity to the top of the page. A position of 1 is at the top. Positions cannot be <1.

    2: If for a 3 given searches, your ad appears in positions 1, 1, and 2, your average position would be 1.3. The ads Google displays vary per searh. Some searches may introduce competitors that come in above you. Some searches may introduce your ad into results where your position is lower than you may expect. Ads served varies depending on your match type and geographic setting and the geographic settings and match types of your competitors.
     
    JonahViaKeyboard, Dec 27, 2004 IP
  3. wingdude

    wingdude Peon

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    #3
    So, looking at it another way, if the average position was 1.0 and the average CPC was £2.01 does that mean the previous max bidder was bidding £2.00. Then if your average position 2 and your CPC was £1.50 then the second bidder bid £1.49. Is that how it works, if it does you could determine what the real bids are for every kewords?
     
    wingdude, Dec 27, 2004 IP
  4. JonahViaKeyboard

    JonahViaKeyboard Peon

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    #4
    Kind of. Yes, if for a given click you payed 2.01 then the max bid of the person in the RANK (not position) below you's max bid was 2.00 for that given search.

    Unlike Overture, Google takes more than just your max bid into account in determining your position. They first calculate what they call your rank, where rank = Max Bix x CTR. Then they compare that to the rank of other ads. Whoever has the higher rank has the higher position.

    You pay .01 more than the person with the max bid directly below you, who may not have a lower position than you have (because position is affected by CTR).

    Google does not let you see the CTR or the Max bix of any account other than your own, making it very hard to guess the max bid of a competitor.
     
    JonahViaKeyboard, Dec 27, 2004 IP
  5. compar

    compar Peon

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    #5
    Wingdude,

    All this information is in the AdWords FAQ. Why don't you spend some time there and then ask any questions here that require further clarification.

    The other thing that would help with all your threads and questions about AdWords/AdSense is if you would tell us what it is you plan to do with this information when you get it. I get the sense that you are looking to maximize your potential AdSense income, but at times the nature of your questions make it sound like you are looking for some way to cheat the system.

    Remember many of us are AdWords advertiser. If you cheat the system it is really us you are cheating or stealing from, not Google.

    Just out of interest some of us don't think #1 position for AdWords is necessarily the best position, we have seen better click through rates in second or third position.
     
    compar, Dec 27, 2004 IP
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  6. wingdude

    wingdude Peon

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    #6
    Well if I was going to use Adwords, which I will soon, I'm going ot need all the help I can get. I'm interested in the Adsense part of it because for a long time many people have been looking for an accurate list like Overture's and I was wondering if I has stumbled on to it. Google's FAQ still left me a bit confused which is why I posted
     
    wingdude, Dec 27, 2004 IP
  7. JonahViaKeyboard

    JonahViaKeyboard Peon

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    #7
    They'll teach you everything you could possibly want to know and more here:

    http://www.google.com/adwords/learningcenter/

    Google has lessons explaining how their system works - just one more reason why their system dominates Overture's
     
    JonahViaKeyboard, Dec 27, 2004 IP
  8. compar

    compar Peon

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    #8
    How is the AdSense part of it got anything to do with a list like Overture? I think you are completely confused in regards to this.

    The closest you can come to the Overture or Wordtracker list -- BTW have you seen the Digital Point Keyword Tool -- with AdWords is to place a theoretical high bid on a search term and Google will forecast how much that will cost you per day. This is a sort of backwards count of the number of searches per day for that term.
     
    compar, Dec 27, 2004 IP
  9. JonahViaKeyboard

    JonahViaKeyboard Peon

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    #9
    Compar,

    As both an AdWords advertiser and AdSense publisher, I have to agree with you. People who try to game AdSense just ruin it for everyone. As advertisers see ROI drop from contextual advertising, they'll pull out (as I have sometimes been forced to do) and that hurts AdSense revenues for everyone.

    Play fair and everyone wins.
     
    JonahViaKeyboard, Dec 27, 2004 IP
  10. wingdude

    wingdude Peon

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    #10
    I undestand this, thanks for your comments, I just wondered how using you could get a secimal average position with 1 specific search term if everything else had been calculated, surely you can't be position 1.2 on the ad list?
     
    wingdude, Dec 28, 2004 IP
  11. Kia81

    Kia81 Well-Known Member

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    #11
    Adsense has different matching options, so for example you choose to use phrase match for a word like "blue shoes". Your ad might be number 1 for that keyword, but number 2 for "blue nike shoes". I guess Google will average those two out.
     
    Kia81, Dec 28, 2004 IP
  12. compar

    compar Peon

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    #12
    What? That is complete garbage as far as I can understand. First of all I think you mean AdWords not AdSense in that AdSense doesn't have any "matching options".

    Now I'm not sure what you mean by matching options even if you are talking about AdWords, but the answer to 1.3 or any other average placement is simple to understand. Google rotates the placement of the ads depending on a variety of things, price bid being only one of them. So if in 10 searches for your keyword phrase your ad happened to be placed in position: 3, 4, 3, 2, 4, 5, 3, 2, 1, 2. then you average position would have been 2.9. The sum of all you placements divided by 10. Why is that hard to understand? It is no different than the average family having 2.3 children.
     
    compar, Dec 28, 2004 IP
  13. Kia81

    Kia81 Well-Known Member

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    #13
    Sorry, I was just trying to be helpful. I did mean Adwords and not Adsense. I have no problem with being corrected, maybe my assumption about Adwords was off, I accept that. I'll apologize to wingdude If I did have a flaw in my reasoning. But compar you were a bit harse in your reply to what I said. I never disrespected anyone on here, and I deserve the same respect. I'm just trying to be helpful and also learn from other webmasters.
     
    Kia81, Dec 28, 2004 IP
  14. compar

    compar Peon

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    #14
    I didn't disrespect you. I just said your answer was garbage. The first requirement in being helpful is to write accurately and know what you are talking about. Your answer was the exact opposite of helpful. It could do nothing but confuse and misinform.

    My mother use to tell me if I didn't have anything nice to say, don't say anything at all. I would suggest a variation on that advice for you. If you don't know what the hell you are talking about shut up!
     
    compar, Dec 28, 2004 IP
  15. Kia81

    Kia81 Well-Known Member

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    #15
    I agree, that If I'm not sure about the advice I'm giving I should not give it. Maybe that was my fault being new to a forum. I'll take your advice and remember it, thats whats forums are for. I see you have alot of post so you must be well respected here. Thanks, and I apologize to anyone who may have been confused about what I said.
     
    Kia81, Dec 28, 2004 IP
  16. compar

    compar Peon

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    #16
    That was a class response. I apologize for being so direct. Hope we see lots more of you on the forum. I certainly would never want to frighten you away.

    How are things in Southern Califoirnia? It's cold as hell in my part of Canada.
     
    compar, Dec 28, 2004 IP
  17. Kia81

    Kia81 Well-Known Member

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    #17
    thanks compar I sent you a private message.
     
    Kia81, Dec 28, 2004 IP
  18. JonahViaKeyboard

    JonahViaKeyboard Peon

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    #18
    Just to add - AdWords does have a function they call matching options. These are the keyword options they call 'broad' 'phrase' 'negative' 'exact' and the rarely used 'embedded' matching options.

    Google's lesson on matching options: http://services.google.com/adwords/gap?lesson=2d
     
    JonahViaKeyboard, Dec 30, 2004 IP
  19. wingdude

    wingdude Peon

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    #19
    Thanks everyone, very useful information, I'll keep you posted when my site goes live.
     
    wingdude, Dec 31, 2004 IP
  20. John2005

    John2005 Peon

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    #20
    Can you explain what in the practice the figure 19.5 means? Of course, for two searches with positions 19 and 20 it gives average position 19.5=(19+20)/2. I have figures such as 51.3; 44.8 etc. But what does that mean?

    As I know google shows no more than 10 ads at the same time. I cannot imagine where position with number 51 is placed.
     
    John2005, Jan 12, 2005 IP