I've started and run several campaigns in the past. I know establishing CTR history is important. I also know that you'll be charged a higher CPC at the start, and shouldn't drop your bid prices yourself. My question is, how long does it take to establish a history, and is the best way to start a campaign to bid high, pay a lot, get a high CTR, then wait for Google to drop your bid prices down? I also realize that landing page quality is a factor, and my landing pages are all text-rich and keyword-rich, and look damn good. So should I expect to take a loss for the first month while I "buy" my top position and wait for Google to drop my prices?
Its hard to tell... I think there are so many factors... like your ACCOUNT's histroy, as well as the niche, and how much comptetion does it have... also how much changes in the CPCs by other advertisers. Remember that if the market moves alot , google will take more time to classify YOU... becuse other advertisers are increasing/decreasing their bids as well. This is what i do.... with great success... I handle the losses for the first month (or more or less), then i notice that things are getting more stable, and ROI is getting better. Tim