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Ad postion kw vs Ad group

sure glad to find this place

         

couldbe

3:04 am on May 27, 2004 (gmt 0)

10+ Year Member



Hi All,

I'm fairly new to adv. on Google and with a $90.00 budget per day I'm trying to learn the system a little faster then trial and error. Yesterday on one of my ads my avg CPC was 2.51, CTR was 5.5% and 451 impression. I've got to get this figured out pretty quick. My max CPC set by Google is 4.09.

Is the position of an ad in regards to it's CTR impacted by the individual keyword's CTR that serves that ad or is the CTR rate of all the keywords in the Ad Group the determining factor.

I also understand that the CTR has no impact until there are at least 1000 impressions. Again does that mean that there needs to be 1000 impressions at the Ad group level or 1000 impressions for each keyword to effect the postion of the ad served on that keyword.

Is there a strategy for placing an ad in 3rd or 4th position, 1st place is kinda pricy without the benefit of CTR adding to the mix.

Is 1 week enough time to figure an ROI?

Any recomended articles-reports online or paticular posts here that might help a newbie

Thanks for any help thats offered

Couldbe

GuitarZan

3:48 am on May 27, 2004 (gmt 0)

10+ Year Member



Hey,

Good Questions, and I wish I knew the answer to them... I will be watching for them too.

One note though. A lot of advertisers that I have read posts from, say that they would rather be in the 2,3 or 4th positions, rather than the 1st.

I can agree. Although I don't have any scientific data, the theory sounds good. Most people that click on the first ad, may just be clicking on it BECAUSE it is the first ad. The lower ads are usually reserved for people that are a little more caring about the subject they are searching for.

Suggestions?

C.K.

eWhisper

6:18 am on May 27, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



CTR is by keyword basis, not the ad or account as a whole.

IMO, 1 week is not enough to fully test ROI, as ROI is dependent on ad, landing pages, keywords, etc. ROI should be determined by keyword, not by an account as a whole (until you take into account the 'branding' & 'lifetime visitor' numbers - which is just a whole other issue).

My newbie primer post - might have to update this sometime:
[webmasterworld.com...]

AWA Info posts:
[webmasterworld.com...]

AdWords Library:
[webmasterworld.com...]

couldbe

6:02 pm on May 27, 2004 (gmt 0)

10+ Year Member



Thanks very much for your suggested links eWhisper, it helped quite a bit in my understanding of the process.

One thing I haven't been able to get my head around is ad postioning. In one of the posts you refferd me to you said

"If it requires $100 a day for your ads to show all day, and your budget is $50, then your ads will only be shown for 50% of the searches for your term"

Does the statement above also relate to the position of the ad?

If its assumed that this applies to the number 1 postion can I increase the amount of time my ad is displayed say to 70-80% by having a lower positon say 3 or 4?

Is there a formula for placing a keyword in a certain position?

AdWordsAdvisor

7:12 pm on May 27, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Welcome to the AdWords Forum, couldbe!

One thing I haven't been able to get my head around is ad positioning.

This is a topic that has been discussed quite a bit in this forum, so a site search would probably net a lot of results. I'll take a look later, and see if I can spot some good ones, although eWhisper will surely beat me to it! ;)

In the meantime, here are two links from the AdWords FAQ. The second link talks about the actual formula involved, and you might find this interesting.

How are ads ranked?
[adwords.google.com...]

How do I get my ad in the top position every time?
[adwords.google.com...]

"If it requires $100 a day for your ads to show all day, and your budget is $50, then your ads will only be shown for 50% of the searches for your term"

Does the statement above also relate to the position of the ad?

Not really, no. Your daily budget primarily determines how often your ads appear. On the other hand, it is your Maximum Cost Per Click (Max CPC) that determines your position (when weighted equally with your CTR.)

AWA

eWhisper

7:13 pm on May 27, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



First off, there is no way to tell G you want position 4. You have to tweak your CTR and Max CPC to move into the desired position. Once there, there is no guarantee you'll stay in that position, as CTRs are dynamic for everyone, so often you'll see an ad fluctuate up and down in positions throughout the day.

If you want an ad to show all day and you don't have a fixed budget, look at the 'estimated cost' that G provides and triple or quadruple it.

If you have a fixed budget, then you need to lower your max CPC. This is all guesswork as there is no tool G provides to show '% of times ads shown'.

You can look at the estimated budget (this is for around 4% CTR, so if your CTR is higher, then the number provided will be low, if your CTR is 2-3%, then this is fairly accurate (fairly accurate could be a +/-20% variable). This will give you a starting point, if the number is too high, then adjust your bids, and try it again until you get something thats fairly close.

Then, each day look at your stats. If you are hitting your daily budget every day - odds are you aren't being shown for every search. Slowly lower your CPC until you are not quite hitting your daily budget everyday, then your ads shold be shown on a consistant basis.

There is a point where you'll find a CPC where you'll have your ads shown all day and use your daily budget up. This is your best CPC for maximum visibility on a budget. It allows you to get the most clicks for your money. Just make sure to track your conversions so its also profitable.

Think of a graph, one side is %times shown, the other side is CPC, there is a point those lines intersect, that X is where you want your CPC to be.

Hope this is fairly clear, multi-tasking sometimes messes up my thinking to typing clarity :)

GuitarZan

12:29 am on May 28, 2004 (gmt 0)

10+ Year Member



Hey,

I like the newbie primer, and it reminds me of some of the stuff I had to learn from myself and others. One thing though.

I have found that most definitely targeted KeyWords will get a better CTR, but, broad KeyWords are very hard to get a 1.5% CTR on. you may get under 1% with broad KeyWords or if your lucky, a bit above 1%.

Thoughts?

C.K.

eWhisper

4:26 pm on May 28, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Broad keywords can be very industry/demographic dependent. I can think of a few broad keywords which regularly have 10-15% CTR, and yet others that have issues maintaining 0.3% CTR.

couldbe

10:21 pm on May 29, 2004 (gmt 0)

10+ Year Member



Well you guys really rolled open the welcome mat for me with your replies. Much appreciated.

After reading the links you supplied and your suggestions as well as the search feature I think I'm really starting to get a grasp on it all.

Just over the last few days my CTR are way up,(as is my daily budget!), and it has translated into enough new business to more then pay for the Ads.

As I'm tinkering with new ad groups and kw's I'd like to get an understanding of how making changes in an existing Ad effects the CTR of the kw associated with that ad.

Can any changes be made to an Ad, one word for example, without effecting the history of the kws associated with it?

Thanks Again,

couldbe

eWhisper

4:31 pm on May 30, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Can any changes be made to an Ad, one word for example, without effecting the history of the kws associated with it?

Any changes to an ad will put the ad back into review and pull it from partner/content syndication.

Instead, make a new ad, let it become syndicated, and then delete the old ad (or let them both run to see which preforms better).

Also, by deleting them and not modifing ads, its easier to compare older ads to see trends and what's worked in the past.