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First position bid estimate
from Google Ads
Metrics type
Diagnostic
Units of measure
Money
Direction
Less - better
Check frequency
Monthly
Description
The bid you likely need to set for your ad to be shown in the first ad position.

This estimate approximates what cost-per-click (CPC) bid is needed for your ad to show in the first ad position at the top of search results when a search query exactly matches your keyword. Your ad can still appear if your bid does not meet this estimate, but it's less likely to appear in the first ad position of search results.
Why it is important
Tracking the First Position Bid Estimate metric is important as it offers advertisers insights into the estimated bid needed for their ad to appear in the top position of search results.

This information is crucial for optimizing ad visibility and understanding the competitiveness of specific keywords, enabling advertisers to make informed decisions about adjusting bids to secure a premium position and enhance the overall performance of their ad campaigns.
Formula
Estimated CPC bid
Calculation example
Let's consider three different keywords and their respective First Position Bid Estimates:

Keyword X:
First Position Bid Estimate: $2.50

Keyword Y:
First Position Bid Estimate: $3.75

Keyword Z:
First Position Bid Estimate: $5.20
Affected metrics
n/a
Affecting metrics
n/a
Connecting metrics
Maximum CPC bid

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Suggested slices for dashboards
by Keyword-Level
by Campaign Type
by Device Type
by Geographic
by Seasonal or Event-Based
The revenue impact pathway
Available in JetMetrics Lite only
Questions to be Answered
1. How does the First Position Bid Estimate differ between different product categories or services within your e-commerce company, and what can be learned about the competitiveness of particular market segments?
2. Is it possible to analyze historical data to understand the connection between bid adjustments and actual ad placements in the first position, providing insights into the effectiveness of bid optimization strategies?
3. Are there certain times or seasons where the First Position Bid Estimate tends to fluctuate, and how can this information be used to plan strategic bid adjustments for peak periods of demand?
4. What effect does the ad quality score have on the First Position Bid Estimate, and how can improvements in ad relevance positively affect the bid required for the top ad position?
5. Can the relationship between the First Position Bid Estimate and conversion rates be examined to identify the optimal bid range that balances cost and performance in achieving e-commerce goals?
6. How do changes in bidding strategies, such as manual bidding versus automated bidding, affect the accuracy of the First Position Bid Estimate, and what insights can be gained to refine bidding approaches?
7. Are there keywords where achieving the first ad position is particularly important for maximizing visibility and conversions, and how can strategic bidding be aligned with the overall marketing objectives of the e-commerce company?
Possible causes of worsening
n/a
Tactics to improve this metric
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