Adwords Position Preference Setting and Prices

February 11th, 2007

Position preference is an advanced bidding feature that gives sophisticated advertisers more control over the positioning of their ads. Some advertisers find this helps them better promote their brands or earn a higher return on investment (ROI). In particular:

Direct-response advertisers can target their most cost-effective ad rankings.
Brand advertisers can make sure their ads run only in the most visible positions.

Position preference helps you achieve your desired ad position in two ways. First, it attempts to show your ad only when its Ad Rank (maximum CPC x Quality Score) has placed it in the positions you select. Second, if the Ad Rank places the ad in a higher spot, position preference will discount your maximum CPC bid to move the ad into your desired range.Bidding Help

A common problem with position preference bidding is that advertisers prefer high positions but make bids that qualify only for lower positions. If you set a position preference of 2-4, but your Ad Rank is usually 6-8, then your ad simply won’t show.

Remember also that the position preference system tends to place your ad most often just below the upper end of your range. If you select positions 3-7, for example, your ad is likely to appear in positions 4 and 5 more often than in 3, 6 or 7.

Here are some tips for position preference bidding:

Review your current bids and average positions, and use them as a guide. For example, if you want your ad to show in positions 2-4, and your current maximum CPC of $1.00 buys you an average position of 3.8, you may need to boost your maximum CPC. Otherwise your ad will show at times in positions 2-4, but you will lose all the impressions you have been receiving below position 4.
Use the traffic estimator. It can help you predict what maximum CPCs will be needed to allow you to compete for your preferred positions.
Broader is better. When you set a position preference range, you also restrict the inventory available to your ads. To get the most exposure for your ad, it’s better to select a range of positions like 3-8 rather than a single position like 4.
When in doubt, bid high. The position preference feature protects you by discounting your bid if it places your ad above your preferred position. Set your maximum CPC to the highest amount you are comfortable paying, and AdWords will discount it when possible.
Be patient. The position preference feature typically needs a few days to gather performance data and calibrate its targeting. Your ad may begin showing in your preferred range almost immediately, or it may take those few days to adjust. We encourage you to experiment, as always, but be aware that every time you change your position preferences the system will need to re-calibrate.

Suggestions for SettingsHere are some common advertiser objectives, with recommendations on the best way to achieve them. These are only examples; your needs and results may vary.

Situation: ‘My preferred position is 4, but I would still like my ad to appear in positions other than 4.’

Set your position range from 3 to 10+.
Set your maximum CPC for the highest amount you are willing to pay for any impression.

Result: Your ad will show primarily in position 4 but may also show in position 3 or in lower positions. If your ad is ranked in positions 1 or 2, the AdWords system will lower your maximum CPC to move your ad into your preferred range.Situation: ‘I want to promote my brand, and I want my ad to show only in the top 3 positions.’

Set your position range from 1 to 3.
Set your maximum CPC for the highest amount you are willing to pay for any impression.

Result: The system will attempt to show your ads only in positions 1-3. When your ad is in position 4 or lower, it should not show.Situation: ‘I’ve found that positions 3 - 6 get my ad the best return on investment. I don’t want my ad to show below position 6.’

Set your position range from 3 to 6.
Set your maximum CPC for the highest amount you are willing to pay for any impression.

Result: The system will attempt to show your ads only in positions 3-6. If your ad is ranked in positions 1 or 2, the AdWords system will lower your maximum CPC to move your ad into positions 3-6.Situation: “I’ve found that positions 3 - 6 get my ad the best return on investment. But I also like the traffic and conversions I get from lower positions.”

Set your position range from 3 to 10+.
Set your maximum CPC for the highest amount you are willing to pay for any impression.

Result: Your ad will show primarily in positions 4 and 5, but may also show in position 3 and in positions 6, 7 and lower. When your ad is ranked in positions 1 or 2, the AdWords system will lower your maximum CPC to move your ad into position 3 or lower.Situation: ‘I want my ad to show only in position 4.’

Set your position range from 4 to 4.
Set your maximum CPC for the highest amount you are willing to pay for any impression.

Result: The system will attempt to show your ad only in position 4. (It may, on occasion, show in other nearby positions.) If your ad is ranked in positions 1-3, the AdWords system will lower your maximum CPC to try moving your ad into position 4. You are likely to see fewer impressions than you would with a wider range of preferred positions.Situation: “I want my ad to show up as high as possible, ideally on the first page of results, but lower positions are also fine.”

You probably don’t need position preference. Simply set your maximum CPC for the highest amount you are willing to pay for any position.

Result: Your ad will appear in the highest position your Quality Score allows.Monitoring Position Preference

When you set a position preference, your ad impressions or click rates may go down. Your actual results will depend on the positions you select, the competitiveness of the pages where your ads run, and your quality score. As noted above, if you set a position preference of 2-4, but your Ad Rank is usually 6-8, then your ad will rarely show. On the other hand, if you set a position preference of 4-10+, and your Ad Rank is usually 6-8, then you are likely to have many opportunities for impressions.

It’s a good idea to monitor your account to make sure your ad is receiving the impressions you want. We suggest you use the Report Center tab in your account to set up regular daily reports that will help you track your impressions. If your ad is receiving very few impressions, your positions preference settings are one of several possible reasons for that.

The AdWords Help Center has instructions for setting up a report. To set up a daily report, use these settings:

Report Type: select Keyword Performance
View: select Summary
Date Range: select Yesterday
Choose the campaigns and Ad Groups you want to track.
Choose the appropriate columns. Make sure to include Impressions.
Filter the report to show only the keywords for which you’ve set position preferences.
Name the report.
Schedule your report to run automatically every day.
Have the report emailed to you daily if you wish.
Click Create Report.

If your ad is not showing as often as you would like, use the ads diagnostic tool to identify the reasons why.Managing Keywords with Position Preference

To view or edit all your keywords with position preferences, try grouping them together: