Q&A Spot: Google versus Overture Ranking

Question:

With Google AdWords I am towards the top of the list first thing in the morning then I disappear even though I've still got credit in my account. Why does this happen? Also, even if I bid the top bid price I'm still sometimes low down the list with Google although not with Overture. Can you explain what is going on here?
Mike Lomas, Northern Training, Bacup, Lancs

Answer:

Firstly Google's algorithm for displaying your ads is more complex than Overture's. With Overture if you bid for spot number three in the rankings that is where you will appear. With Google its different. They take into account not only your bid price but also your click through rate (they appear to multiply one by the other to get the ranking position).

The reason they do this is that they wish to reward you for putting together effective ads. Conversley, if you are getting poor click throughs you will be penalised (event though you may be bidding a higher price than others). So, good ads are good for you (and Google).

In terms of the first point they also seem to 'spread out' the appearance of your ads over a period along with competitive ads. This is also a function of your bid price and how much credit you have. I have also noticed that quite often when I have upped my credit the ad appears more regularly even though it doesnt cost more overall.

Although some argue Google is easier to use, its certainly the case that Overture is much simpler to understand. They both deliver good results though.