Google AdWords has a newish (October 2008) feature that some AdWords advertisers have the option of giving a try named Smart Positioning (BETA). I looked back and I don't believe we talked about Smart Positioning (BETA) here, so I thought I find a thread and discuss it now.
WebProWorld has the only discussion on Google's Smart Positioning that I could find and it is not much discussion at all.
What is Smart Positioning? Google says this is a special bidding feature that is designed to get you "more clicks for the same total cost." How does it do that? Google explains:
- Smart Positioning calculates incremental CPCs to evaluate the effects on cost and clickthrough rate that would be associated with a higher position for your ad.
- Once our system determines the incremental CPC for putting your ad in a higher position, it compares the incremental CPC to your maximum CPC bid.
- Your ad is placed in the highest position possible, as long as both the actual CPC for that position and the incremental CPC are less than your maximum CPC bid.
Google provides a few examples on how exactly this plays out. In addition, you can read the FAQ for Smart Positioning in detail, which includes how to turn it on and then how to turn it off.
I saw it on one of my client's account but I personally have not given it a try. Have you?
Forum discussion at WebProWorld.