How Can I Get in the Top Paid Search Position on Google?
Ad rank, or where your ad appears in the paid search results, depends on your click through rate (CTR) and how much you're prepared to pay for each click. Although it may not feel like it, Google actually run an internal auction to determine ad rank. But unlike a regular auction, it isn't just about price. Its about quality too - the quality of your ad compared to others bidding for the same keyword, and the quality or relevancy of your landing page.
As you probably already know some keywords are very competitive and you may need to pay several dollars per click to get in the top position.
However, you can bring this cost down if you can maintain a high click through rate, preferably above 10%.
Click through rate is a measure of how many people click on your ad compared to the number of times your ad is shown. For example, if your ad is displayed 100 times and one person out of the 100 that has seen the ad clicks on it then you have a 1% click through rate.
The higher your CTR, the more Google rewards you with lower bid prices.