Inside Adwords:How are display positions determined?

You would have thought for getting to the top of Ads,you would have to shell out the most among the advertisers advertising on the website or on the Google search results.However,Google uses a system that also takes into account the relevance of the ad for the respective search.

The position of your Adwords ad depends on two factors:

1.How much is the maximum cost-per-click for the keyword.

2.How many Internet users have clicked on your ads previously.

In technical terms,it means Google's placement of your ads is a combination of its maximum CPC and the clickthrough rate.CPC=cost per click.The higher your CPC or your clickthrough rate,the higher your adword's ad will be shown.

This system also ensures that Internet users always see ads that are relevant to their search and not just ads from people having the high CPC.This ensures that Adwords advertisers are on a common ground,when advertising with Google.There is constant change in the placements of the ads on Google depending on how many users are clicking on the ads and what is the maximum CPC that are the advertisers are willing to pay.The position of the ads change various times during the day so keeping an eye on your ad's position would be such a bad idea.