Greetings I know a young web developer who is insisting that his state is driving up his customers' AdWords cost, because the state can afford much higher bids. I know very little about such things, though I'm trying to learn. Here is his complaint: "Since the Google program is based predominantly on the "highest bidder" model, the Visit xxxx site's participation in the program effectively raises the cost to other xxxxx businesses. There are many factors that determine top placement in the AdWords program, and certainly the per-click bid is one of them. The state is using taxpayer money to out-bid local businesses for search traffic. They would be more likely to receive this traffic if the state was not participating," Mr xxxxx explains. Google AdWords is a fantastic marketing tool. It is a great way to direct commerce to our area. Unfortunately, the state's campaign has put a damper on the program's effectiveness for some of xxxx's businesses." Does anyone else think that there is anything in this? In auctions, high rollers do drive up bids, but does it work with pay-per-click as well? Thanks!
Thank you so much for that info. We have a troll up here in xxxx who has been trying to terrorize some very nice people with his blog. It started with that accusation, which he actually posted, disguised as a news release (written by him in the third person) - unauthorized - on a Chamber of Commerce website, which he was webmastering. Crazy! Thanks again.
If you have relevant ad's and a good CTR you should be able to get a good position for your keywords at a decent CPC regardless of the other bids.