Strategy: Bidding high for CTR... Then backing off.

Did this strategy work for you?

[progex]

In order to compete for a competitive keyword (e.g. 40 Adwords), some people bid high to obtain a solid CTR, then let off on it.

For those of you who have tried this strategy, how effective is it?

[patient2all]

I read that here, tried it and it's been working for me. For the first 2-3 days, I'll use a near unprofitable bid and garner an impressive CTR. I've noticed when I cut the bid down to 1/2 of what it was, my position does not drop. I've seen this repeated in several campaigns. I hope my competition isn't reading!

Google says that simply bidding high does not give you a higher position. The click through rate is factored in also, so someone bidding .05 could conceivably outrank someone bidding .75 if the lower bidder has maintained a higher CTR. That's a drastic example, but the bid and CTR are two items that are weighted when determining positioning. You can search for a simple description of the formula somewhere in this forum, but I believe that the CTR was given more weight than the bid. Hence it becomes possible for the lower bidder to rank higher than the more expensive bid.

It's presumed that the person with the higher CTR has a more relevant ad than the competition, but the method you cite appears to help to convince Google of one's relevancy, deserved or not.

patient2all

[edit_g]

If you use this method in conjunction with a very good ad then you won't look back. Be careful to budget well though - it can get out of hand.

[exmoorbeast]

Hi

I posted the same question in July....

we now use this strategy all the time and it works without a doubt.

Good luck

[eWhisper]

Related Thread:

[webmasterworld.com...]

[keywordguru]

I would have to say that it can be very favorable if you do it correctly. Start big, and watch everything closely, then back off on the pricing and see where the bid can still hold a great position.