The Real Reason AdWords is Retiring Position Preference

The day after Google’s Chief Economist, Hal Varian, shares some insights on the average position metric, emphasizing that conversion rates don’t vary much with the position, they decide to call it quits on the AdWords Position Preference feature.

Set aside the fact that the position preference feature was confusing and unlikely to be missed considering you can now run automated rules to keep your average position in check, here is the real reason AdWords is doing away with position preference:

setting a position preference can sharply reduce the number of impressions and clicks you receive for that keyword. Targeting just one or two positions means your ad will not show at times when it otherwise might have. ~ What is position preference?

At the end of the day, Google wants your ads running whenever possible. Why would they keep position preference around when they can get you to jack up your bids using automated rules in order to achieve a desired position without sacrificing impressions and clicks?

Duh! Winning!

2 thoughts on “The Real Reason AdWords is Retiring Position Preference

  1. Aaron – I agree, as an advertiser that uses position preference a lot, I am really frustrated by this because I know my costs will be going up.. let me know if you have any ways to counteract this, or if you want to start a petition against it.. :)

    thanks!

  2. Aaron – In my opinion it is a positive move to remove position preference. Instead of utilizing position preference it is better placing a spend cap and optimizing account to use modified broad keywords. Position preference reduces the opportunity to participate in auction and missing valuable clicks and impression. It is better utilizing the other available option like automated rule, CPC optimization and even running campaign in CPA mode.

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