| > Jeff Klingberg wrote:
The cost per click is dependent on two basic things. One, how badly the Keyword is wanted by you and your competition. Two, how far up the sponsorship roll you want to be. The first position is more expensive then say the 10th spot.
Sorry but this is not the case with Google AdWords, which is the topic here. See my earlier post where I mentioned that Google uses a CTR x Max. CPC formula to determine the position of an ad. There is also the premium position at the top of the SERP, which is a special reward for popular ads.
If Mike's ad has a Max CPC of $2.00 and a CTR of 1%, the ad gets a Rank Number of 2.
If Jeff's ad has a Max CPC of $0.05 and a CTR of 5%, the ad gets a Rank Number of 0.25.
If Andrew's ad has a Max CPC of $0.10 and a CTR of 25%, the ad gets a Rank Number of 2.5.
Therefore the ranking will be:
- Andrew's ad
- Mike's ad
- Jeff's ad
If you think about it, the ad that generates the most revenue for Google is ranked highest.
Private Reply to Ash Nallawalla (new win) |
