I think that I've come across a retail product that's about to be massive. I reckon I can initially get great SE placement simply because there's no competition yet.
But I've never played PPC before. What sort of strategy would you recommend.
Say the product is 'laser pens' and nobody else is selling them online and you know that there's a massive market out there once a few people get them and they read about them in the magazines etc. Would you just bid the minimum to drive traffic to your site or sites? Does it have to be anymore complicated than that?
Bidding is ok, but once some big player comes into play your bid is gone and you're left with nothing. I'd rather try to build a site and try to get early adopters and fans to link to your site -- that way even after somebody big comes you still have your site and pagerank and you are likely to rank higher than competitors in serps.
The advantage of jumping into PPC early in a products' history is you can build some ads with very high CTRs.
When the 'big boys' come in and try to monopolize the market, they will have a harder time competing because you have put together an effective campaign before anyone else and already know how to market the product.
Due to the bid rank formula, you will have a large advantage as you will have an established high CTR which can keep your ad in a high position even with a lower bid.
You will also have the advantage of knowing your conversion rates, so if you are later forced to up your bid, you know exactly what you can afford to pay based on conversion rates and profits/sale to up your bids and stay highly competitive.
Personally, I would spend time both making the site come up high in the engines and run a PPC campaign with minimum bids in such a scenario.