Ad position refers to the ranking of an advertisement in the list of sponsored search results displayed by a search engine. It is determined by the combination of a bid amount and the quality score of an advertisement, and it affects the visibility and effectiveness of the ad. In a pay-per-click (PPC) advertising model, higher ad positions typically lead to higher click-through rates (CTR) and, consequently, higher conversion rates.
Determining Ad Position
In order to determine the ad position of an advertisement, search engines use a combination of bid amount and ad quality score. The bid amount is the maximum amount that an advertiser is willing to pay per click on their advertisement. The ad quality score, on the other hand, is a measure of the relevance and usefulness of the advertisement to the user. It takes into account factors such as the relevance of the ad’s keywords to the search query, the relevance and quality of the landing page, and the overall user experience.
The combination of bid amount and ad quality score determines the ad rank, which is used to determine the ad position. Advertisements with higher ad ranks are displayed in higher ad positions. For example, if two advertisers have bid the same amount for a specific keyword, the advertisement with the higher ad quality score will be displayed in a higher ad position.
Benefits of Higher Ad Positions
Higher ad positions are typically associated with higher CTRs and conversion rates. This is because ads in higher positions are more visible to users and are therefore more likely to be clicked on. In addition, higher ad positions may lead to a lower cost-per-click (CPC) because advertisers are willing to pay more for higher ad positions.
However, it is important to note that higher ad positions do not necessarily guarantee higher conversion rates. The effectiveness of an advertisement also depends on factors such as the relevance and quality of the ad and the landing page, as well as the overall user experience.
Ready to Take Control of Your Traffic?
Discover how Lunio can help you monitor and optimise your ad spend.
Optimising Ad Positions
Advertisers can optimise their ad positions by focusing on improving their ad quality scores and bid amounts. Some strategies for improving ad quality scores include:
- Using relevant and specific keywords in the ad copy and landing page
- Creating high-quality and relevant landing pages
- Optimising the overall user experience on the landing page
In terms of bid amount, advertisers can consider the following strategies:
- Setting a high enough bid to compete for higher ad positions
- Using bid adjustments to optimise the bid amount for specific keywords, demographics, or devices
- Utilising automated bidding strategies such as target CPA or target ROAS to optimise the bid amount based on the advertiser’s goals
Frequently Asked Questions
How does ad position affect the cost-per-click (CPC)?
Higher ad positions typically lead to lower CPCs because advertisers are willing to pay more for higher ad positions. However, the CPC also depends on the competition for the specific keyword and the ad quality score.
Can advertisers choose their ad positions?
Advertisers cannot choose their ad positions directly. Instead, they can influence their ad positions by optimising their ad quality scores and bid amounts.
Can the ad position be influenced by the ad format?
The ad format can potentially affect the ad position, as different ad formats may be given more weight or prominence in the search results. For example, Google Ads allows advertisers to use various ad formats such as text ads, responsive ads, and shopping ads. These different ad formats may have different ad ranks and therefore potentially different ad positions.
Can the ad position be influenced by the type of device being used?
The type of device being used can potentially affect the ad position, as different devices may have different ad ranks and therefore potentially different ad positions. Advertisers can use bid adjustments to optimise the bid amount for specific devices, in order to potentially improve the ad position on those devices.