Cost for top listing

Will this tell me the cost for the top spot?

[mullerg]

**Sorry about the title, keyboard mistake :-0
Can someone please change it to Cost for top listing
Thanks. **

Hi,
First of all I want to say that this is an awesome forum. I have learned a lot from reading everything here. Thanks!

I was wondering if I am really seeing what I think I'm seeing when I do the following...

I have a Paused Ad Group and set my Maximum CPC to $50.00.
If I enter a keyword such as [widget] and click on estimate traffic, the results show Average Cost-Per-Click $1.92 and Average Position 1.0.

Does that mean if I bid $1.92 I will have the number one position? If that is true then that means the current number one position is paying $1.91 per click?

I think that is a good way to find out what the cost is for any keyword to be listed in the number one spot, but I just want to make sure that is what it really means.

Thanks,
Gary

[qfguy]

No. Google also factors in the CTR (click thru rate). They want maximum revenue (don't we all).

$1.92 per click x 10 clicks a day will produce $19.20 a day

$.09 per click x 1000 clicks will produce $90 a day!

Which would you give top billing? I am not sure how they factor in words and bids without a 'history' but I know the give higher placement for good CTR.

[eWhisper]

Actually, I like the title, everyone will know what it means, and the play on words is refreshing as it's a common wish.

That's an estimated position, and the estimator can often be way off.

Secondly, that's not necessarily their bid. Ranking is done by CPC x CTR. So if you have a $10 bid and 1% CTR, and they have a 10% CTR and $1.01 bid, they will appear first.

The only way to see if that formula will give you the top position is to bid it, then do a search on G.

[integramed]

It's probably a good estimate - which is all the estimate tool claims to give you. To find out for real set you max CPC to $2.00 and run the ad. Then look at your real costs.

But, the name of your posting "lusting" is a good one.. you can waste a ton of money on Adwords lusting after the top position. And you may not need top position. After you've done the above test and got real numbers, then set you Max CPC to, say $0.17 and compare results!

Remember, Google only displays 8 of these guys per page, and many people scan all 8. So, if you are in position #8 will your click volume be that much lower. Try it and see, you might be surprised, and you'll certainly save a ton of money ;-)

[mullerg]

I want to thank everyone for their help. I forgot about the CPC x CTR formula. I will still give it a try for one keyword and see what happens.
Thanks again,
Gary