Tonearm - 12:19 pm on Aug 6, 2012 (gmt 0)
If the system raises the bid when the ad is already in the top spot (especially if it is a high volume keyword), then the system needs to be adjusted or the keyword needs to be managed manually.
So raising your bid if you are already in first position, does not raise your cost since, assuming all else remaining equal (which it never does by the way), your cost will be the same.
These comments from skibum and LucidSW seem at odds with each other. Does anyone know who's right? If raising your bid when you're already in the #1 spot can increase your CPC if you're in the #1 spot due to your quality score, I need to have my system check the average position of each keyword before the bid is increased.
you cannot say to do one thing and expect a certain result every time
Even so, I think it's worthwhile to understand how the various moving parts work. Just because you can't get a particular part to affect you in a particular way every time doesn't mean you can't use your knowledge of that part to your benefit, right?