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Yahoo Search Marketing Pay Per Click Advertising Forum

Overture - traffic response to increased bid
(elasticity of supply)

 10:02 am on Mar 1, 2004 (gmt 0)

I am spread out on about 200 keywords, my average position is 7-8 (some cheap kw I'm no.1 while in others I'm no. 15) I want to increase traffic volume.

tried to figure out what sort of increase in traffic will result if I increase my max bid per click by say - 20%.

From your personal experience - will the expected percentage increase in traffic be more or less than the percentage increase in my bid (+20%)?



 3:49 am on Mar 2, 2004 (gmt 0)

% of spend increase doesn't coorelate that well to % of increased visitors. It depends a lot on positioning. In many industries, as positions go up, the bids go up even higher, so a 10% higher spend could mean only a 5% increase in traffic.

You'll often see large bid gaps between 1-3, 4-6, etc (depending on how they are syndicated on yahoo).

You're better off looking at the Y page, where your ads are displayed, and then finding a position that seems to offer you a good price, position, and visibility.

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