I have using adwords since 2005. I have always been in the #1 position for all my ads. Obviously competitor activity has increased dramatically over the past few years and costs have gone up exponentially. It is now getting to a point where the cost of using adwords is bordering on being nonviable.
Here is my predicament:
During the past few months my ad position has dropped. In some cases to the second page. (from being #1) My quality score on almost all my keywords are 9/10 My CTR is around 12% Conversion Rate is around 13% Estimated top page bid (on keyword report) is $0.03 My actual cost per click is $3 (currency converted from ZAR)
Why has my ad position dropped so dramatically? Why is my position not #1 if I am paying so much more than Google estimates it should cost for #1? If I am paying $3 for position 5 (example) and considering my ad performance, how much would #1,#2,#3 be paying (roughly)? I find it difficult to believe that the competitors are paying much more than me because it makes no financial sense. Could it be?
Any other suggestions?
My ad copy is the best I can get it. I use site extensions.