Lowering ad Words Campaign Costs

I was talking to a competitor of mine and he told me I should start doing ppc. I do very, very well organically. Most important here is he said that initially my cost for ppc will be very expensive but after 6 months of solid ppc advertising google lowers my cost of advertising. For example he says:
His cost for a ppc term is now only .60 cents for the #1 position where my cost for the same #1 position would be $3.60 because I am a newbie. Is this true. That over a 6 month period google lowers the cost of ppc to their big spenders - and what is the definition of a big spender to acheive this great savings over time?

Thanks,

 

As we've discussed in other forums, your costs will be lower if you test new ads and improve your click rate. It won't go down by itself if you do nothing and it certainly won't go down just because you advertise for a certain period of time. It might but only because of external factors.

I wouldn't put too much weight into what a competitor tells you. PPC is a good way to get traffic. But as with anything else, there is a right way and a wrong way. The wrong way means you'll be disappointed and lose money. You can be successful from the start when doing it the right way. And you won't be spending $3.60 per click.

 

As Lucid said - get your CTR and Quality score up and that will bring your CPC down.