Newbie ?

(I dont currently do any PPC). I just checked the top 3 bids at Overture for a term and they were $8.33 then $3.31 then $3.30.

Why would there be such a discrepancy between the 1st bid and later ones?

Did the 1st person try to inflate the bids? Make a horrible mistake?

 

Looks like a "bid gap" has emerged on you keyword. Most likely what is happening is the person in the #1 position has set their max bid at $8.33 (or higher), and the person in position #2 set their max bid at $8.32. If this happens the system will set the bid for the #1 position $.01 higher than the #2 position. The system will also set the #2 bid $.01 higher than the #3 position. In this case the max bid for the #3 slot is $3.30. So, the system will set the #2 bid at $3.31.

I'm probably making this sound more confusing than it really is. Here is a link to an article I came across that explains it better.

http://www.pay-per-click-advertising-guide.com/articles/article/1743997/21486.htm

 

Thanks for the article hopkinted.

 

Nice article, thanks