In Google and there other search partners they have pages and pages of results that come up when someone types in a keyword. So your bid is part of getting a higher position then the other ads on these pages.
But how does your bid effect the Adsense Ads on Publisher's sites if you leave that turned on? Usually the publisher's site has only 1 table of ads with perhaps 4-6 ads in it. Sometimes even horizonal on there page rather then vertical. So it's not really about position on there webpage. It can be anywhere on it and not have much different of an exposure then the other ads on there.
So if you bid higher does that effect how often your ad will display (impressions) on these webpages? Or effect just the limited number of positions on there page (between 1-6) or whatever? Or does it effect how many publisher's it is sent to to display with the top 4 or 6 bids getting displayed and the rest not? I just don't understand how that works. If it only effects the position of the limited ads shown on the page I would think you would never want to bid more then the min. 5 cents for the Content (Adsense) Advertising. Seperate then what you bid for the Search Engines Ads....
Yet there are Adsense ads that cost a ton, so what are they getting for bidding that high on them?
