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paying high cpc for low ad position

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# 1
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In an experiment, i was able to see that for a particular niche, the ad position 1 advertiser is paying around 1$ per click and the 2nd position advertiser is paying 2$ per click, now since the 2nd advertiser is paying more then why his ad position is on 2nd number?

Marked as Best Answer.
Accepted by MosheTLV (Top Contributor)
September 2015

Re: paying high cpc for low ad position

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# 2
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It is because of the Ad Rank formula MaxBid x QS. The advertiser who pays more but ends up on position 2 needs to increase the relevancy of his/her Ad texts.


Learn about how the auction works from this video :


The situation described by you is explained at minute 5 second 26