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Position Improvement for Keywords

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Hi, for some KWs I want to increase position heaviliy for instance from Pos. 6 to Pos 2.


I did so by increasing CPCs, now I have the situation for some KWs as by example:


MAX CPC = 6$

AVG COC = 3$

AVG POS = 4 !


Since there is such a big gap between max and avg cpc, is this an indicator of a bad QS? Will this be getting better if I take care of the ads and built up some history? And if so, how long would it take approx? You guys have any other thoughts to share on this?


Thanks in advance!

1 Expert replyverified_user

Re: Position Improvement for Keywords

Top Contributor
# 2
Top Contributor

Hi PPC NATIVE, interesting question as it's something I've been looking at on my own Accounts recently - average CPCs being substantially below the Max yet Average position being below #1.


I think the answer here is that we're looking at averages and average figures can look strange over some periods of time.  In the case of position, average CPC and Max CPC, it may indicate that there are substantial fluctuations in CPC during the day, or day to day.  I have one Account where the Average CPC can be less than $2 at some hours and almost $9 at others so you can see how having a Max CPC somewhere in the middle might mean that for some periods your Max CPC is enough to hit the #1 position and for others it's not enough to get anywhere near that high.


Quality Score isn't really an issue here since all values are relative.  Quality Score is defining how much you have to pay for a particular position and increasing it will allow you to pay less and retain that position, but it's not Quality Score itself that's causing the phenomenon of not reaching your Max CPC while having a low position.


Your solution here is to look at the day parts, you may find, as I have, that at some hours of the day the average CPC does reach $6.   If you do find this then you can use Ad Scheduling and bid adjustments to alter your bidding dynamically throughout the day, although you should always check your Return on Investment in these periods; depending upon your profit it may make more sense not to chase the higher positions during these expensive periods.



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Re: Position Improvement for Keywords

Follower ✭ ☆ ☆
# 3
Follower ✭ ☆ ☆
Hi, thanks for your feedback, that was great information. Just created a script to adjust bids at certain hours since scheduling bids per hour is not possible with AdWords Rules.

One more qq. Could at be at certain times where I bid for example (6$ MAX - 3$ AVG - Pos 3) when I increase the CPC little more I come up with this (7$ MAX - 6.50$ - Pos 1)

theroreticcaly speaking I sometimes have to increase MAX CPC just a little further to make a jump in position and in avg cpc spent?

Re: Position Improvement for Keywords

Collaborator ✭ ✭ ✭
# 4
Collaborator ✭ ✭ ✭

When I wanted to find this out, I used experiments with a 30% higher bid on the experiment and a 30 % experiment, 70% control ratio. If the peak MaxCPC is higher for pos 1 than your MaxCPC you will see various pos1 in the experiment row of data.

Re: Position Improvement for Keywords

Explorer ✭ ✭ ✭
# 5
Explorer ✭ ✭ ✭
Well, what is your QS?

But QS has little to do with it. It's simply the system at work.

First, don't assume that things remain static. They are not. You have different competitors all the time, each with a QS of their own which changes (as well as yours), bidding differently and changing their bids. All this will affect your stats.

Look at it this way: 3 advertisers with the following QS and bids:

A1 7 $6
A2 10 $2.50
A3 5 $2

Say you are A1 in whatever position. You get there because of your ad ranking which is your QS times your bid. The basic CPC formula says your next competitor is A2 and based on those numbers, you'd pay $3.57.

But A2 decides to bid more since he's got a great QS. He wants to move up the rankings. So he decides to bid $5 instead of $2.50 and moves ahead of you. Your competitor is now A3 and based on that, you'd now pay $1.43. Same bid of $6 and you lost just one position but paying 2.5 times less.

It's not because of your QS which at 7 is good. It's the market that has changed and affected you. Everything you do affects not only you but others as well.

Averages as Jon said can play tricks on you, especially with few data points. In my example, one click while A2 and A3 were your competitors would result in a CPC of $2.50

The solution to get a higher position is to increase QS (always the first thing you should do) or increase the bid to a higher value. If by increasing bids only your position does not improve as much as you'd think it would, it's likely competitors have higher QS than you do. Doesn't mean yours is poor, just that others are better and taking advantage.