Do adwords advertisers even need to worry about bid gaps if they set a Max Bid per keyword??? For example, if the keyword I'm bidding on bids are as follows (without taking into account CTR & the whole ad quality score, etc): Position 1 - CPC is $0.70 Position 2 - CPC is $0.65 Position 3 - CPC is $0.49 If my Max Bid is set at $0.64, I will end up paying $0.50, right? Because thats the next step up from the 3rd psoition which is at $0.49... So bid gaps don't even matter in this sense right? Is it the same for yahoo & msn as well???
You're right that you only pay enough to appear above the advert below. But Google adjusts your bids based on the Quality of your adverts (in terms of a number of things, including clickthrough rate), so you could end up paying more than the advert above you, or less than the advert below you. But bid gaps don't matter at all.