Also the ads with the best CTR will show?
Do I have that right?
So I all reality it really doesn't pay to advertise TWO similar companies or products unless you use different keywords?
Thanks
Meaning Google will not display both of my ads advertising the two different companies?
Correct. One ad per account per search query will be shown at any given time.
Also the ads with the best CTR will show?
To answer this question, I have to make some distinctions:
First, Google has to determine which keyword to be selected and then shows the ad of this selected keyword. I believe the exact same keyword in the same account will have the same CTR (please, correct me if my believing is wrong). Since they have the same CTR, the ad with higher "max-CPC" keyword will show.
If both keywords have the same max. CPC (or AdRank), the ad with higher CTR will be selected in most of the time.
So I all reality it really doesn't pay to advertise TWO similar companies or products unless you use different keywords?
You can use the same keywords for 2 similar companies or products to test their conversion and/or ROI by setting them in the same ad-group with 2 ads (each for each product) and unchecking "Automatically optimize ad serving for my ads".
...One ad per account per search query will be shown at any given time.
Absolutely correct.
First, Google has to determine which keyword to be selected and then shows the ad of this selected keyword. I believe the exact same keyword in the same account will have the same CTR (please, correct me if my believing is wrong). Since they have the same CTR, the ad with higher "max-CPC" keyword will show.If both keywords have the same max. CPC (or AdRank), the ad with higher CTR will be selected in most of the time.
This is not quite correct, FromRocky. Actually, since keyword CTR is really dependent on how well the keyword and it's ad are targeted to each other, it is quite possible for a keyword used in two (or more) Ad Groups within an account to have very different CTRs in each of those Ad Groups.
With that as a background, when two or more Ad Groups have a keyword in common, the AdWords system will:
* First default to the Ad Group in which the keyword has the highest Max CPC. However, if the Max CPC is the same in all Ad Groups, then;
* The system will default to the Ad Group in which the keyword has the highest CTR.
Hope that'll clear it up. ;)
AWA
* First default to the Ad Group in which the keyword has the highest Max CPC. However, if the Max CPC is the same in all Ad Groups, then;* The system will default to the Ad Group in which the keyword has the highest CTR.
Now for how it should work if I had my way ;)
1. The Geographic area of the user is examined. If regional, show regional. If no regional, show country.
2. What AWA said.
However, I don't think that's entirely accurate. If that were so, then my AdSense campaign with a $0.05 CPC would never get a search impression when the national campaign CPCs are over $0.50.
However, they do.
Secondly, I've seen examples where the content search did so well, it overtook the other ads and showed more often on Google's search than the campaigns made for search (this usually only happens when the max CPCs aren't that far apart, like $0.10-$0.15 for search and $0.05 for content.
Could be part of the system experimenting, could be that the ad rank formula lets one KW outrank another in the same campaign regardless of max CPC.
