Most pay per click networks work on the simple rule that the higher you bid for a certain keyphrase, the higher your ad position. But this is not the way that the most popular (and fairest) pay-per-click network, Google AdWords, calculates your ad position.
In AdWords, bid price is only one factor in its ad position equation. The other main factor in the ad ranking equation is Quality Score, as calculated by combining a bunch of factors, the 3 main ones being (listed in order of weighting):
1. Click-Thru-Rate (CTR),
2. Ad Relevance (keywords in ad title and copy)
3. Landing page quality (keywords in landing page copy, structure, etc.) Read the rest of this entry »
