kellyandsummer - 7:58 pm on May 16, 2005 (gmt 0)

you are now paying more per keyword then anyone else bidding on the same thing, because your CTR is lower.

Since when does having a lower CTR increase your cost per click? I know it has no bearing on Overture. To my knowledge, having a lower CTR on Google moves you lower down the right hand side of the page, but it doesn't mean I'm paying $.50 per click at position #8 when the guy at #1 is paying $.05 per click. Does it?

You are also assuming myself and my competitors all have the same exact max bid on Google?

Can you copy me something from Adwords TOS/Rules that says a lower CTR makes you pay more per click than someone with a higher CTR, while still keeping your ad below the higher CTR ad?

If you are correct, I will be the first to thank you for enlightening me, as a 4 yr PPCer spending $100K+ per month on Google!