In [webmasterworld.com...] StupidScripts talked about locale having influence over rank. He suggested that the following scenario existed:
Scenario 2:
YOU: Max CPC = $5.00, CTR = 0.8%, Locale = Idaho
THEM: Max CPC = $1.50, CTR = 0.4%, Locale = Maine
SEARCH: "maine widgets"
YOUR POSITION: #2 (locale rules)
It appears as he/she was saying that locale can trump a massive rank score (CTR x Max CPC)
YOU: $5.00 x 0.8%, Rank Score = 4
THEM: $1.50 x 0.4%, Rank Score = 0.6
I am wondering if there is evidence of locale being included as a factor and secondly, if they do, is it really as important as (anything but) Stupid Scripts suggests?
The positioning/pricing of new ads is effected by what amounts to a predicted CTR of the combination of the ad copy and the keyword that brings it up.
[webmasterworld.com...]
AWA is talking about CPC for new ads here, but the mechanism might be similar.