Position preference is a feature in Adwords that allows advertisers to request that their ads are shown in a specified position for any given keyword. It is important to note that with position preference turned on, Google cannot guarantee that your ad will be shown in the preferred position 100% of the time.

Optimizing Your Keyword Ranks With Position Preference
Conversion rates can vary drastically across keyword rankings. By using the position preference option, advertisers that have identified a preferred (higher converting or more efficient) rank can set a preferential ranking in Google.

For example: if your product or service does not tend to generate an immediate conversion response, you may find that the #1 & #2 positions generate a high number of click-throughs but a relatively low number of conversions. This will undoubtedly lead to an increase in CPA. In this instance the advertiser may consider setting a position preference of (3 - 5). These settings would send a request for an ad-ranking (3-5) assuming that the ad meets auction requirements for those positions.

The key to effectively utilizing position preference lies in the advertiser’s ability to cross-reference conversion data. This can be achieved by either setting up Adwords Conversion Tracker, Google Analytics or a third party analytics solution. In the early stages of testing, advertisers should monitor their performance as it pertains to their original ad rankings. This should act as a benchmark, followed by testing ads at different ranking ranges.

How to Enable Position Preference
1. Login to your Adwords account.
2. On the Campaign Summary page, select the box to the left of any campaigns you want to enable for position preference.
3. Click Edit Settings.
4. Find the Networks and bidding section.
5. Under Options, select the box next to 'Position preferences.'
6. Click Save Changes.

What Are The Position Preference Options?
There is a wide range of position preference options in Adwords.
- Higher than a given position (such as above 7)
- Lower than a given position (such as below 4)
- Within a range of positions (such as from 2 - 8)
- In a single exact position (such as position 2)

Does Position Preference Always Work?
The short answer is no, the top limit cannot be guaranteed. As pointed out by Brad Geddes, "...if there are 10 people with position preference turned on, and their top position is all 4, then if Google followed that ad serving plan, there would be 0 ads as no one wanted the top 3 spots. The bottom limit of position preference is a hard limit - the upper limit might not be."

While this example is an extreme case, it highlights the point that position preference allows advertisers to set a preferred position and that said position cannot be guaranteed.

Tony, Clickable SEM Guru
 
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