I made some changes a few hours ago and so far nothing has happened. Ads still ranked the same.
Surfing around different forums, seems like a number of people are experiencing the same thing.
Any thoughts?
Your ad will still behave as it did before you set the position preference, but if your ad falls below the postions you have set, then it will just disappear.
Someone else chime in if I'm off base here.
I think I actually answered my own question after rereading the help file again:
[adwords.google.com...]
If you find that your ad gets the best results when it is ranked (for example) third or fourth among all AdWords ads, you can set a position preference for those spots. AdWords will then try to show your ad whenever it is ranked third or fourth, and avoid showing it when it is ranked higher or lower. If your ad is ranked higher than third for a given keyword, the system will automatically try to lower your bid to place your ad in your preferred position.
So it should reduce your bids automatically to try and achieve a lower position.
Here is what I missed the first few times I read thorugh the documentaion:
Once you set new position preferences, it may take a few days for the AdWords system to begin delivering your ad according to those preferences.
There is a delay. Surpised it could take a few days to see the change. Wonder if the system has to do some sort of analysis of the keyword market to learn how to properly adjust your ads?