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AW_Learner - 6:00 pm on Jul 3, 2004 (gmt 0)
They never loose money. It's all icing on the cake for them. I doubt the position changes much for a while after increasing the bid either. They wouldn't up the position until uping the CPC first. Yeah but it was half a day afterwards. And the next day it didn't show many more clicks then what it showed at that time of checking. Maybe it's the average I'm seeing. It really doesn't show the exact cost per click just the average. I wonder if the average always takes into the equation the cost of all the clicks for the entire day even when they had a higher or lower max CPC. That might make sense as the average slowly started to get lower. Never instantly dropped to 25 cents or lower average but went down to 80 something cents then 70, 50, 30 etc. I'll just wait for there explination by email so I understand this stuff better.
Or conversely, when there's a lag after you up your bids Google is losing money. Also, are you even sure these clicks occured after you reduced your bid by 80%? Another rational explanation would be these clicks occured before you reduced your bid, but the clicks weren't reported until afterwards.