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Ad Rank: what CTR is used in the calculation?

     
7:39 am on Nov 19, 2008 (gmt 0)

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So the formula for Ad Rank for placement-targeted ads is Ad Rank = Bid * CTR (although it is clearly more complex than this, just humor me).

now, what version of the CTR is used? Is it daily or for the whole campaign's lifetime? Next, is it for the placement, advertisement, or keyword?

For example: one day you might have a CTR of .3, then next you might have one of .11. The CTR for one ad will differ that the CTR for another, and same goes for placements and keywords.

I am trying to give my bids more stability and would really like to know this information, if possible.

2:05 pm on Nov 19, 2008 (gmt 0)

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Google uses the entire CTR history but gives more weight to the more recent CTR. If different advertisements have different CTRs, it uses the average of the CTRs while calculating your position.

The Ad Rank is calculated for each placement or Keyword separately before deciding on the position of your ad. So I am not sure what the effect of different CTRs have on different keywords/placements.

I am ignoring the effects of the Quality Score. It is possible that different advertisements could have different Quality Scores too.

5:02 pm on Nov 20, 2008 (gmt 0)

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I'm faced with a similar question at the moment.

Currently I'm spending a hell of a lot of money in order to lift my ctr by simply bidding a bit more, so that if ever possible I will be placed on spot 2-3 and average CTR gets to > 10% all over the campaings. I hope that in the near future then, I will get these spots a little bit cheaper.

Does this strategy make sense at all?

> but gives more weight to the more recent CTR.

this is a bit vague. How long will it take until this shows any effect?

 

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