Based on your bid and quality store, your website is given an ad rank or position. The average position is considered to be the simplest position.
But I want to show you the scenes behind the curtain. The average position is not as simple as it seems. People from mathematical or statistics backgrounds may clearly know what does average means.
You might be thinking that it's the position where your ad lands most of the time. But no, it's the mean position where your ad is placed.
There are many myths like:
· A higher position is the best
· Bidding higher will improve your position
· Not being on the top is a failure
· It would be best if you used keywords all over the landing page
· If your competitor is going higher, you need nothing but magic
This type of mixed concept can mislead you regarding the actual meaning of average ad position; therefore, you must exactly know what does average position means?
Let's break it down:
Ad Rank is a score calculated based on your quality and bid, which determines ad position. With this calculation, ads rank on the quality, keywords, and landing pages rather than just the bids.
Google defines Average Position as, A statistical analysis that determines how your ad will typically rank in competition to other ads; these ranks then determine the order of the ad appearance on webpages. For example, an ad with position one means that an ad was shown first compared to any other ad.
A simple formula can be used to calculate it as:
If an ad appeared two times in position 2,4 and 5 then
This formula can be used to know the average position.
Determining Ad Position
The following factors determine the ranking and position of the ad:
Bid: Setting a bid tells google about the cost you will pay per ad click. You have to be tricky in this, as you might end up paying more than what you should be paying.
Quality of Landing Pages: One of the ranking factors on google is that Google ranks the pages with useful and relevant information. You can go to the quality score for better experience and improvement, where google summarizes your ad's quality. You can monitor and work to improve your ad.
User's Research Context: The context of a person's research matters, as google, monitors the device of the user, the pages he searched and landed, the location of the user at the time of research; all these things have a great impact on average google position.
Ad Extensions: When you make an ad, you have the option to add additional information like phone number, email, etc. Google calls this additional information as extensions. The position is determined by the impact your extensions have on your ad’s performance.
Auction Competition: When there are two ads in competition, they both have the same degree of ranking. The gap between two ads depends upon the bidding and cost per click. In order to win, you will have to increase the cost you will pay per click.
Analyzing the Average Position
The average position is analyzed based on the impressions received by your ad on each position. You can watch out per day, or per hour report for your ad impressions, even some of the high quality and best performing ads get the average position of 1.2 or 1.3.
Adjusting the Ad Position
After analyzing the average position, you will get an idea of what improvements does your ad needs. You may have to increase or decrease the bids under your desire.
Manage Average Ads Position
Now that you have understood what the average position is and how it is determined and analyzed, it's time to sit back and manage it. Watch out for the google ad results about top vs. you. This will clearly show you the deficiencies and what you need to do to be #1.
Look for the location that works best for you, and make bidding strategies. You can use ad groups and keywords on top of the page for better optimization.
Leave behind the concept that being in the second position is a failure. Let go of the blind bidding practices and desire to be on top. Research and dive deeper into the real concepts of ad optimization and ranking factors.
If you still have any confusion, scroll up and read the article till the end again, do not miss out on any of the smallest detail. Repeat the steps and let your desired results happen.