Which does Adwords prioritize... Position preference or max bid?

Discussion in 'Google AdWords' started by bucks4banners, May 4, 2008.

  1. #1
    So, supposing I set my maximum bid to be $1.

    Then I set the position preference to be 6-8.

    Will Adwords my push my ads above that position, thus causing me to pay higher CPC?

    Or, will it maintain my ads in the 6-8 position as long as it is within my max bid?

    Thanks for reading :)
     
    bucks4banners, May 4, 2008 IP
  2. PPC-Coach

    PPC-Coach Active Member

    Messages:
    1,450
    Likes Received:
    23
    Best Answers:
    0
    Trophy Points:
    90
    #2
    It will not go above your position preference.
     
    PPC-Coach, May 4, 2008 IP
    bucks4banners likes this.
  3. bucks4banners

    bucks4banners Guest

    Messages:
    72
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #3
    Thanks for the assurance, Coach ;)

    Do you really coach people in your ppc-coach website?

    I've joined wealthyaffiliate before.... great community, but coaching from the real expert are hard to come by.
     
    bucks4banners, May 4, 2008 IP
  4. bucks4banners

    bucks4banners Guest

    Messages:
    72
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #4
    I check my placement just now with the keyword diagnostic tool and my ad is on the 3rd spot although I set it to 6-8 position preference.

    Although, it seems like my cost per click is dropping.

    My QS is still at "Great"....

    Should I assume that it will take more than a day for Adwords to properly adjust to my position preference?
     
    bucks4banners, May 5, 2008 IP
  5. bobbylove321

    bobbylove321 Active Member

    Messages:
    689
    Likes Received:
    13
    Best Answers:
    0
    Trophy Points:
    58
    #5
    I'm not really a fan of adwords because now adays google seems to be all about the BIG businesses and forgets the small guy. It is really hard to rank high in adwords for competitive terms and not lose money
     
    bobbylove321, May 5, 2008 IP
  6. Sem-Advance

    Sem-Advance Notable Member

    Messages:
    6,179
    Likes Received:
    296
    Best Answers:
    0
    Trophy Points:
    230
    #6
    ppc coach is good but he is human and makes mistakes.

    If you over bid the position your ads will show higher in higher position.

    If you bid for position... but there are empty spots before your positions... your ads will be placed in those positions.

    :)
     
    Sem-Advance, May 5, 2008 IP
  7. bucks4banners

    bucks4banners Guest

    Messages:
    72
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #7
    So you mean, if I set position to 6-8 but position 5 meets my maximum CPC, my ads will then show in 5th position?

    Well then, it is back to basic then... test, test, test :D

    Thanks... will work on it base on your tips.
     
    bucks4banners, May 5, 2008 IP
  8. Sem-Advance

    Sem-Advance Notable Member

    Messages:
    6,179
    Likes Received:
    296
    Best Answers:
    0
    Trophy Points:
    230
    #8
    Well first you need some more information.

    Everything below is based on hypothetical situations, however to keep things simple we are speaking of Ads displayed on Google.com when a query is done.

    At 9:00 AM EST in the US there are 20 advertisers, yourself & 19 other for 'viagra pill' keyword

    If you use position preference at that point and you CPC matches you'll find your ads in Positions 6 to 8


    At 12:00PM 10 more advertisers join in and several bid higher for the keyword, than the Advertisers ahead of you, then your ads will fall out of the Positions 6 to 8... since your CPC won't be high enough to get there.

    We are up to 30 advertisers competing, yourself and 29 others,....the day goes on and budgets get spent and Advertisers begin to drop off.

    By 8:00 PM there are only 5 advertisers left, yourself and 4 others.....since there is not enough Advertisers to fill 6 positions... much less 8... you cannot be placed in those position 6 to 8 as Google does not allow empty spaces between their ads.

    So while you have to test you also need to realize there is constant change in the PPC advertisers and budgets.

    On Tuesdays there are typically less Advertisers than on Thursdays... due to the fact by Tuesday most people are broke....where as on Thursdays there is usually good portion of people that get paid and have money to spend....

    Hope it helps.....

    :)
     
    Sem-Advance, May 5, 2008 IP
  9. ebyun84

    ebyun84 Peon

    Messages:
    89
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #9
    I agree with coach.
     
    ebyun84, May 5, 2008 IP
  10. Sem-Advance

    Sem-Advance Notable Member

    Messages:
    6,179
    Likes Received:
    296
    Best Answers:
    0
    Trophy Points:
    230
    #10
    He will appreciate that..... but my post above explains why things do not happen as simply as ppc-coach has implied.....and I am willing to bet he knows this as well... and simply let it slip his mind due to how busy he is.

    :)
     
    Sem-Advance, May 5, 2008 IP
  11. bucks4banners

    bucks4banners Guest

    Messages:
    72
    Likes Received:
    1
    Best Answers:
    0
    Trophy Points:
    0
    #11
    Oh wow... thanks for going more in depth.

    I'll keep track of my keywords then to find a sweet spot.

    Maybe in the future I will have a clearer picture to go into timezone setting too :)

    Anyway, based on my testing, what you say seems to be true.

    Once I lowered my CPC 5cents at a time, checking every 30-60min, then only my ads will fall into my preferred positions.

    So far for most of my keywords with clicks I manage to cut at least 50% of my CPC...
     
    bucks4banners, May 5, 2008 IP
  12. CustardMite

    CustardMite Peon

    Messages:
    1,138
    Likes Received:
    33
    Best Answers:
    0
    Trophy Points:
    0
    #12
    I've been discussing this quite a lot with one of my friends at Google.

    In general, where possible, your advert will show no higher than your maximum position. And for most campaigns, things are stable enough for this to be the case.

    SEM-Advance has outlined the situations when it can fail - though in my experience, most of these are unusual.

    1) Frequent bid changes by your competitors. When you set a position preference, Adwords calculates a Proxy Bid for you - the amount that it thinks will get you the position of choice. But it doesn't change this in real time - so if your competitors change their bids, you may appear above your chosen position, or not appear when your actual bid should get you there.

    2) Number of competitors. If you want to be 5th +, and there are only 3 adverts, you'll appear 3rd.

    How well it works depends on how often the competition vary their tactics.
     
    CustardMite, May 6, 2008 IP