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What is the relation between Adrank & Adposition?

Follower ✭ ☆ ☆
# 1
Follower ✭ ☆ ☆

Hello Everyone, 

 

I recently updated bid for one of my keywords in Google Adwords. I increased the bid which results in increase in Adrank, but there is no much change in Ad position. I want to know does is there any relation between Adrank & Adposition? hmm. I am checking average ad position column, there is not much change, the position has improved as follows:

 

Day 1 Avg Adposition - 3.8

Day 2 Avg Adposition - 3.8

Day 3 Avg Adposition - 3.6

 

Before increase in bid 

 

Day 1 Avg Adposition - 3.8

Day 2 Avg Adposition - 4.0

Day 3 Avg Adposition - 3.8

 

In both above cases there is not much change in ad position?

 

Does increasing bid would improve my ad position? Is there any relation between Adrank & Ad position? hmm

 

I am tracking avg. Ad position.

Regards,

Chris Kriag

1 Expert replyverified_user

Re: What is the relation between Adrank & Adposition?

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭
Hi Chris,

Increasing budget directly impacts ad rank which is what determines ad position.
Learn more here:
https://support.google.com/adwords/answer/1752122?hl=en

That being said, an increase in budget does not guarantee an increase in position. Consider the following example:

Your top 3 competitors are all bidding $15. Now if you are averaging position 4 with a bid of $8, increasing your bid to $12, while it will increase your ad rank still outs you at a lower bid than the other 3. So assuming an equal QS you will still be in 4th position.

Other issues that come into play are with your particualr situation in that you are trying to go from averaging 4th to 3rd, this will take you from top of the right to bottom of the top 3 spots. This jump in positions can have an impact on your QS, through expected CTR. If all your of your competitors are using a variety of ad extensions and you are not, by trying to get to the 3rd spot your ad extensions are elegible to be shown. Without the same ad extensions that your competitors are using you will in general have a lower expected CTR and thus have a lower QS, meaning you would have to bid a fair amount more to achieve the same ad rank as them.

These are just a few situations that could occur, to show that is not as simple as an increase in bid will increase your avg position.

Good Luck

Re: What is the relation between Adrank & Adposition?

[ Edited ]
Badged Google Partner
# 3
Badged Google Partner

Hello Chris K,

of course increasing your max CPC will affect your Ad position. Ad position is determined by Ad Rank and one of the main components of Ad Rank is your bid. So it is one of the aspects on whether and how your ad position will raise.

But there are also other aspects of Ad rank like Quality Score and other ad extensions.
Ad rank looks most likely like this: Ad rank = max. CPC bid x Quality score, but we have to count also extensions to the equation, so its more like this: Ad rank = max. CPC x ((QS x 0.8)+(Ad extensions x 0.2)). So improve any part of any component of this equation and your rank should go up and also your position should go up.

Also when you're testing anything in Adwords, give it at least 10-14 days and more. 3 days of testing might give you not that accurate results.

 

Also good article for you: Understanding ad position and Ad Rank

Alex

Re: What is the relation between Adrank & Adposition?

[ Edited ]
Follower ✭ ☆ ☆
# 4
Follower ✭ ☆ ☆

Well thanks Clynton M for the reply..

 

As you have mention that increasing your bid will sure improve your ad rank. So if the adrank increases I think there should be a change in Ad-position too? As Adrank decides where to position your ad on page - So i think increasing the Adrank would sure improve the Ad-position. What you say about this?

 

Another thing I wanna ask - Is there a certain threshold of CTR for each ad position? If yes, then how to know that? Where to seek information for that?

 

Also how we can judge that Adrank or Quality score has improved due to CTR?

Also I wanna know is there any way to know how much the competitors are bidding for a keyword? What is there Adrank, Ad-position and much more?

 

 

Regards,

Chris Kriag

Re: What is the relation between Adrank & Adposition?

Follower ✭ ☆ ☆
# 5
Follower ✭ ☆ ☆

Hey Thanks Alex for the reply...

 

Now I am getting a clear picture of the scenario. I just wanna ask - Is there any tool or way to find out how much the competitors are bidding for a particular keyword? What is there Max.CPC? What is there Ad-position and Adrank?

 

Is there any way to find this stuff?

 

Regards,

Chris Kriag

Re: What is the relation between Adrank & Adposition?

Badged Google Partner
# 6
Badged Google Partner

Hey Chris K,

you cannot find any of these metrics on your competitors unless they tell you. But there are tools like Auction insights where you can see some info about your competitors Ads, but only in auctions where your Ad also appeared.

If you want to find some information about CPC values for some particular keywords, then you can use:

Global Market Finder
or

Keyword Planner

 

Alex

Re: What is the relation between Adrank & Adposition?

Top Contributor
# 7
Top Contributor

Hi Chris,

 

I've a feeling there's some confusion here.  Ad Rank is your position within the auction when compared to your competitors for that auction, not an absolute number.  So, in a very simple example, if your Max CPC is $5 and your QS is 8/10, your Ad Rank will be lower than someone with a bid of $5 and a QS of 9, or someone with a QS of 8 and a Max CPC of $7.  It's important to understand that Ad Rank is related to advertiser competition because that explains why an increase in CPC doesn't necessarily increase your actual position.  As Clynton described, if the competitors above you have a much higher Max CPC and better Quality Scores, you may have to increase your bid substantially to beat them.  Bear in mind also that those above you in Ad Rank are paying only 1c more than you, but they may have a very much higher Max CPC, so simply increasing your bid by 2c is unlikely to increase your Ad Rank or position because their CPC will simply increase by 3c.

 

This video by Hal Varian explains the AdWords auction very well and should answer most of your questions:

 

https://www.youtube.com/watch?v=PjOHTFRaBWA

 

Jon

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