Why is my average position so low in Google AdWords?

Your average position is low in Google AdWords because competitor ads are winning the bids over yours. This indicates that you are either bidding too low or that your keywords are earning a low quality score, or a combination of both.

Google AdWords determines the order ads get prioritized on web pages based upon the combination of bid and keyword quality score. Naturally, Google wants to sell their ad space to the highest bidder. Yet Google also wants to ensure that all ads are as relevant as possible to the keywords being searched. So keyword quality score is also very important in determining which ads win the bid and get top billing.

When you examine your ad performance in the Google AdWords campaign manager, you will see the average position of each of your ads. You ideally want your ads to appear in the top three positions for greater visibility, although you minimally want your ads to appear on the first page (top 8 or so) of search results. If the average position of your ads is low, first make sure that your maximum cost per click (max CPC) bids are competitive. Then, check your keyword quality scores. You can raise your bids if necessary or find better keywords that match your ads and landing page.

See: What makes people instantly click Google Ads now?