When advertising on search engines, particularly on Google Ads, the position in which your ad appears is determined not only by your bid but also by your Quality Score. The Quality Score is a metric that takes into account factors such as the relevance of your ad copy to the keyword, the quality of your landing page, and your ad’s click-through rate (CTR).
If you and a competitor bid the same amount for a keyword, but your Quality Score is higher than your competitor’s, your ad will generally appear in a higher (more visible) position than your competitor’s ad.
The final ad rank, which determines the position of your ad, is calculated as: Ad Rank=Bid×Quality ScoreAd Rank=Bid×Quality Score
So, with the same bid, a higher Quality Score will give you a higher Ad Rank, which translates to a better ad position. However, always remember that Google Ads and other search engine advertising platforms are dynamic, and auction dynamics can change based on multiple factors, including other competitors entering the scene or making adjustments to their campaigns.