What is an ad position?
From Google: A keyword-targeted ad’s position is based on its ad rank, which is determined by your keyword or ad group’s cost-per-click (CPC) bid times the matched keyword’s Quality Score. To be promoted to a top position above Google search results, your ad must exceed a certain quality threshold, which helps ensure that only the highest quality ads appear in top spots.
Here is a graphic that helps explain this:
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