The highest bid gets the highest position in the Adwords Auction, right?
Let’s make it short – NO, the highest bid doesn’t guarantee the best position!
This topic pops up quite often when talking with clients, since many are under the impression, that the highest bid always wins in an AdWords PPC auction.
For the same reason, people are often surprised to see how ad quality improvements and focus on optimal landing pages can improve the ROI of AdWords significantly.
What should I work on to improve my position then?
The Google team made this excellent video in Mid 2014, that explains quite well, how the bid is only a part of ad performance (although a big part), and how other factors also are a big part of the equation.
Enjoy an “oldie” but goldie from the Google Ads team – they did well.