In every single campaigns i have tried. my ad always show up as one of the last results. i get 3-4% CTR, bid 0.20 on a minimum 0.05 keyword, all quality scores are great and yet my avg position is extremely low. How do i fix that?
Bid higher. http://www.redflymarketing.com/blog/adwords-great-quality-score-low-minimum-bids-but-no-impressions/
someone is advertising the exact same website with about the same adtext and hes ALWAYS, ALWAYS on every search, on the third position. Does that mean hes bidding like 1$ per click?
minimum bid means nothing about position. its just the minimum you need for the ad to be activated. You could have a min bid of .02 but need a $10 bid to get on the front page.
Yes, you do need to bid higher in the short term to get a higher position in AdWords. It's good to test a number of positions as well and see what works best in your niche. I have found many keywords perform well in AdWords when in position 2 – 4, but some keywords in some niches, seem to have a better overall performance (taking into account PPC cost and sales revenue) at position 5 – 8 and so on. Without knowing your niche, your CTR of 3 – 4% is not bad but may be able to improved upon. Try to use only one keyword per Ad Group (unless you have some 'very' similar keywords that could go together in an ad group) . I know it takes a lot longer but does pay off. It will mean you ads are very targeted to your keywords. Also, write very compelling ads that show the 'benefits' to the person reading them, and always run a minimum of 2 ads per Ad Group. If you then drop the ad with the lower click through rate (CTR) and replace it with a new ad, you will allow you to continually improve your CTR, your quality score and thus reduce click costs. Just the simple 'testing' of ads, can help increase the AdGroups effectiveness and make a substantial improvement to your campaigns. This often results in lower keyword costs . Also, make sure to use your keywords in the ads and have a relevant landing page. All the best. Anthony Buchalka