A method and a system are provided for optimizing sponsored search ad placement for online advertising. In one example, the system obtains advertiser bid amount information. The system obtains advertiser bid amount information. The bid amount information allows determination of amounts that advertisers will pay per user click on ads served in association with advertiser bids. The advertiser bid amounts are associated with advertising campaigns. The system obtains click-through-rate information associated with at least some of the ads. The system obtains budget information associated with the advertising campaign. The budget information specifies a maximum advertiser spending over a period of time in association with at least a portion of the advertising campaign. The system ranks a set of ads to be served based on the bid amount information, the click-through-rate information, and/or the budget information. The system optimizes ad placement of the set of ads by eliminating one or more keywords. The system then facilitates serving of the set of ads in accordance with at least one of the ranking of the set of ads and the optimizing of the ad placement.
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