You can do whatever you want, just let em' stay in the top spot with a really high bid. (S)he probably figure that nobody else will both increasing their bids significantly.
Ignore them, cause spots 1,2,3 probably aren't all that much different.
Raise your bids to just below theirs and deliver some clicks so they actually have to pay that rate from time to time.
Welcome to WebmasterWorld, wallywally.
Personally, I would educate number 1 in the intricacies of autobidding :)
Just did that (at a much lower price point) and #1 has bailed out of the bidding - leaving my client #1 at half the cost. I really don't think they have a clue what we were doing to them...
Oh well, that's business.
I know not everyone here agrees with that strategy, but I'll let them speak for themselves..
I'd buy a ppc managment software that has a competition buster. You can have it check every hour and put your bid exacly 0.01 below there's. This will force them to pay 9.99 while your still paying your current cost.
If you decide to do this just make sure your watching carefully. If they do a sudden drop your account will be vulnerable until the software has a chance to make another change.
We have found that there is very little difference in being #1, 2, or 3.
In fact, it seems like the #2 position is actually the best one for some keywords for us. Maybe it has to do with how the viewer sees it in relation to the rest of the page, and how much clutter there is.
Many who are bidding big money do look at whats happing very regularly or employ software to do it for them:).
3 bidders all using "competition busters" makes for some fun.
Stupid? You got that right. Just laugh at them. They're probably just as baffled as you - wondering why they can't get traffic with bids that high.
Nowadays, many searchers won't click the very highest ranked listings because they know darn well they were bought, rather than being chosen on the basis of merit or relevance.
Enjoy your #2-3 ranked listings, and the advantage of credibility from which you may benefit.
Better yet, on keywords where there is enough competition, drop your bid until you're in the middle of the page, and become even more credible.
Welcome to WebmasterWorld downstrike.
Do you really think people click on 2 and 3 because they think it is not bought and 1 is?
You could always teach them a lesson by bidding just below them and forcing your competitor to pay their max bid, but there is no guarentee this will get rid of them. Maybe they can afford 9.99/click. Plus, if you raise your bid, #3 might do the same thing to you.
If there are only 3 people bidding, I would ignore the top bidder. In my experience with PPC engines, I have found that there is no pattern to whether you have a better ROI being position #1. Personally, for my list of keywords I have determined that the optimal position varies by keyword.
Thanks for the welcome.
Perhaps I shouldn't presume to speak for more than myself.
But when I'm looking at search results these days, I automatically scroll down without looking at them because it's been my experience that the top listings simply aren't as relevant as someone would like me to think they are. I can usually find an area below - perhaps even a discreet section - where I can find more relevant listings.
Yes people do "skip" the top serps but I doubt many just skip position 1.
ive got a vague memory that OV supports a few charities or partners or such and puts them in the process at a very high bid cost to make sure they always at the top. Maybe its one of those.
Actually it sounds very strange to me reading it again, but maybe its something similar.
I've just put a couple of new bids in and the number 1 position is a site paying £1.16 I'm in at number 2 5p :) what fools!
i rarely do the one cent under the #1 spot. i would hate for someone to do that to me. I will usually do it for a day just to see if it looks like somebody is monitoring it or not. A few times i have seen them monitor it and try and do the same thing to me.
if this happens i back off or bid somewhere in between, so i am still getting the low price and they are not paying just one cent more than me, but are also not paying thier top price.
When there is a gap like reported in the original post, why worry?
I have read somewhere over the last 2 weeks, that being on place 2 or 3 could be much better as people who click on #1 very often check out #2 and #3 as well. So if you get sales with your #2 position you get the sale at much lower cost. Why spend big bucks for (just) possible higher sales numbers and reduced unit margins?
NB: also check out the clickz article on increasing ppc-ROI.