Google uses a unique way to determine position of your advertisement on its site. Google uses a two-tier system to decide positioning of your advertisement. It is normally according to the bidding amounts for these positions and the click through rate of your advertisement.
The cost per click of your advertisement is the amount you bid and are ready to pay. You can better your position by paying a higher cost per click in relation to what other listed advertisements are paying. However, once you achieve this position on the Google AdWords, you have to maintain it too.
Maintaining your position on the Google AdWords depends on your click through rate. If your advertisement records many clicks, your can carry on with your position. However, if the click rate falls below permitted levels of Google, you lose your position and ranking on the Google site.
Therefore, your ranking on the Google AdWords is the product of the
maximum cost per click and click through rate. If any two advertisers have the same ranking, Google AdWords determines your position by calculating any number of decimal places as necessary.
It is a wrong notion that the highest bidder will reign at the topmost position on Google AdWords. Google reviews your keywords to decide on your position.
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