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Originally Posted by Nookster
It all depends really on the keywords you're using. Placement with commonly used keywords is all based on how much you're spending for that keyword and how many other people are doing the same. Higher placements go to the highest bidders.
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Higher placements go to the highest quality score. Creative quality, CTR, landing page quality, bids.. also historical performance for at the: account, campaign, and ad group levels.