Position Preferences

How does it work exactly?

[GAds]

Say I want my ad to show at third position. The actual CPC needed for this placement is, for example, $0.55. And I set the max bid at $5.00. How Adwords will do with this situation?

1. Automatically reduce the CPC to the actual bid and place my ad to the No.3 slot (I don't want my ad to show above that position).

2. If the ad below me raises its bid, mine will be raised accordingly to maintain the 3rd position.

2. If the max CPC of the ad below me is set to above $5.00, it will replace me to show at third position (provided that it wants exactly the same No.3 position). My ad will disappear from search.

Is the above true? I don't see much discussions on the Position Preferences feature here. So please share your experience or opinion on this. Thank you.

[poster_boy]

GAds, based on what I've experienced I do believe you have it right. In your example, I'm assuming you're setting 'highest' and 'lowest' both to position #3.

There is a bit more involved in your last scenario... there are complications that involve things like CTR and/or Quality Score, but assuming the competing ad is to rank higher than yours, your ad would indeed disappear.

[GAds]

poster_boy, thanks for the help. You have confirmed my speculations on how the Position Preferences feature works. Now it's time to give it a try and see if I can make the best of the new feature.