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tried to figure out what sort of increase in traffic will result if I increase my max bid per click by say - 20%.
From your personal experience - will the expected percentage increase in traffic be more or less than the percentage increase in my bid (+20%)?
You'll often see large bid gaps between 1-3, 4-6, etc (depending on how they are syndicated on yahoo).
You're better off looking at the Y page, where your ads are displayed, and then finding a position that seems to offer you a good price, position, and visibility.