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Hurtin the AW Competition..

Discussion in 'Pay Per Click Advertising' started by jason123, Jul 14, 2004.

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  1. #1
    Regarding G AW..

    You are bidding $0.50
    Competitor #1 is bidding $1.00
    Competitor #2 is bidding $0.30

    If I would like to make competitor #1 pay more per click, can I just simply increase my bid (without exceeding theirs)? Will I pay any more if I am the only bid that changes?

    Please elaborate if possible..

    *CTR's being the same..
     
    jason123, Jul 14, 2004 IP
  2. expat

    expat Stranger from a far land

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    #2
    you can outperform a higher bid on AW if you manage to have your AD's sailing closer to the wind e.g. answering the underlying query more precise and being more attractive to visitors than your competitors and thus getting more ct's.

    In the same way you can not simply outbid a #1 spot on AW you have to earn it by ct's.

    AW rotates ad's to check which gets better ct thus determining overall position.
    The same way one can use it to show three different AD's and let AW decide which one atracts the best ct.

    Thus an unexperienced competitor may well be trying to bid higher and higher as G does not reveal the bids.

    M
     
    expat, Jul 14, 2004 IP
  3. jason123

    jason123 Guest

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    #3
    This has nothing to do with performance or ad rotating. My question is posted theoretically, based on the G AW system..

    If I have the same CTR as the other competitors above. 1 bidding $1.00 and the other bidding $0.30. If I increase my bid up to $0.99, will that force the top paying competitor to pay more than if I were to bid at say $0.50 in the same scenario? Additionally, would changing my max bid to $0.99 make me pay ANY more for the clicks to my ad - IF in fact no other competitors below me raised their bid amounts?

    *ALL factors in this scenario being the same (including CTR), aside from actual CPC bid amount(s)..
     
    jason123, Jul 14, 2004 IP
  4. digitalpoint

    digitalpoint Overlord of no one Staff

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    #4
    No, it will not force all bids to be $0.99, but it will generally raise the per click cost (for you too).
     
    digitalpoint, Jul 14, 2004 IP
  5. expat

    expat Stranger from a far land

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    #5
    Yes it raises overall cpc cost for everybody, but for the top payer the increase will be less than for you the runner up.
    M
     
    expat, Jul 15, 2004 IP
  6. Joel Naten

    Joel Naten Guest

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    #6
    Yeah, you are much better off trying to formulate the proper wording of your ad for the keyword you are bidding on. I'm not saying it's easy, but it will drive more traffic to your site for a cheaper price.
     
    Joel Naten, Jul 21, 2004 IP