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The minimum bid was pretty stupid, economically.
Originally, minimum bids were just a way to appease the Premium Sponsors while Adwords was getting started. Now the average Adword bid is high enough that Google doesn't need the Premium Sponsors anymore. That's my opinion.
Google's waking up.
Well it finally appears that the google marketing department finally understands the law of supply and demand.
I just added a bunch of high price keywords at a nickel a shot. Im sure I will need to pay more, as soon as the competition catches on, put its going to be close to a free ride for a while.
On Overture, most results come from the partners, so if you do not make the first three positions, your click-thrus drops significantly.
On Adwords, most results come from Google, and they have 8 placements on the first page.
Since the advertisement is on the right, instead of a top down approach as in Overture, good ad copy makes a bigger difference that actual vertical placement in the right column, in generating click-thrus.
Because of this, I find that adwords is much cheaper that Overture.
My approach has always been to create ads for multiple keywords, at least some of which would spend my $5 minimum at a nickel per click. But I add other keywords with high minimums just to take whatever scraps fall.
Good news for all.. s I wasnt going to pay 37p for the keyword.
Also I noticed Google has relaxed the CTR for some keywords it was a very popular keyword and I could no way get 1% on it .. I dont know if they knew this but for 5 days now I havent got the dreaded red low-CTR :)