I just wanted to clarify a question I had about keywords which everyone seems to have different opinions on. Here's an example to ask the question. I sell blue widgets I am bidding on the broad term "widgets" I am not bidding on the phrase or exact term "blue widgets" Let's say Google displays a max of 5 advertisers at any one time. There are six companies including my own selling blue widgets. My max CPC for broad "widgets" is higher than each of the other five companies max CPC for Exact and Phrase "blue widget" Every other company is bidding on the exact and phrase "blue widgets". If a user searches for "blue widgets" my broad "widgets" should pick this up. Will my ad show, given that there are only 5 possible spots and I am not bidding on the exact or phrase (keeping in mind too my max CPC is higher than all of the competition)? Assume: CTR/QS is constant for all adverisers. Put simply: Does the fact that I have a higher max CPC negate the fact that my competitors have an exact/phrase match (albeit with a lower max CPC) on the search term and thus Adwords will give my text ad precedence? Currently my understanding is that if there are 5 max spots and i am bidding only on a broad term, my text ad will not show if 5 companies are bidding on the exact regardless of CPC (all other factors like QS/CTR equal and constant among advertisers)
Saying ctr/qs is constant just means that you're not going to get an accurate answer. They're never constant, so setting them as constant, hypothetically, just means you're not going to further your knowledge of their system.
CTR and QS is never the same though, it will NEVER be the same for 5 ads bidding on the same term. I would suggest you read up on them and work on improving your CTR and QS, thus allowing you to lower your CPC cost. You could be number 1 and have a much lower CPC then your competitors.
This is just a hypothetical situation, not reality and I didnt want to get the answer "Depends on QS and CTR". Of course it isn't a realistic assumption (but possible - say if a new product was invented with a name that no one was bidding on and CTRs and Qs would, initially be about the same), but if we were to make that assumption then according to Robert the top bidder would get first spot. Any Google documentation on this?