Kendo - 1:30 pm on Jul 9, 2012 (gmt 0)
Do not let competition cause you to overbid.
How do you know that you are not being played off against them? I know what I pay for some keywords so when I see others placed higher and then see a weak product, I get suspicious... like how can they afford to pay such a high price if they are not making sales? How can some companies who don't even have a product for that keyword afford to pay $6.50 for a click though? How many freebies are given away to get advertisers riled up enough so that they increase their own budget and just blow more dough?
Or if I look at another one... knowing the percentage of visitors that result in sales, how can anyone afford to pay $2.50 for a click through when they are selling an iffy $25 product?