I have spent the last few weeks really working on tweaking my AdWords account and for the most part things are going quite well, but I was just wondering what Google would do in this situation: There are two firms with ads set to display for a particular keyword. Firm A has the ad for the keyword in a specific exact match adgroup and the ad gets a CTR of 12% when the keyword is searched, while firm B's ad is in a general adgroup that gets a general CTR of 5%, but for keyword itself it gets a CTR of 8%. Firm A is bidding $1.50 and Firm B is bidding $2.40. Whose ad will generally be displayed in position 1?
I want to go with Firm B, but I could be wrong since there are other factors involved. I think your question should be rephrased as who will be displayed higher? The reason I would naturally go with Firm B is because bidding has a heavier weight than ctr itself, generally. Ranking = QS * BID So from a general assumptions and standpoint, using Google's "formula" (which will never be completely revealed), bid price carries a lot of weight. And in your example, Firm B's bid is 60% higher. So to answer your question, I don't really know, but we can justify somewhat favoring Firm B to obtain a higher ranking. I hope this makes sense. Its been a long adwords day again...
well since google love to make as much money as possible, lets look at it the way they would Take this for example Firm A of 100 clicks @ 12% CTR = 12 clciks * 1.5 = $18 income Firm B of 100 clicks @ 5% CTR = 5 clciks * 2.4 = $12 income so who do you think google would rather show at this point?