going from high to low bids strategy

want more information about that

[idolw]

i've been reading this forum for a while now and the answer to most beginners' questions was:
"bid high at the start, get high position and good CTR. after some time lower your bids slightly so that you still keep the position."

that sounds a bit strange to me, actually, as it sounds like blind shots if you are unable to estimate the % by which the bids are to decrease.
so what is your experience in this matter?

another issue that bothers me when I think about this strategy is: how new competitors entering the game affect your own game? is the historical data for your ads so strong that you are able to keep your position?

AdWords Gurus! share your thoughts here

[naplesdave]

Sometimes this strategy works, but not always. Many time you will be stuck at a higher bid (than say a minimum) because the quality of your ad - keyword combination.

The strategy of starting out at five cents and building up quality works as well.

The make it or break it point is unknown especially if others are competing for the same keyword - because of the many factors involved:

keyword
ad
CTR

(not only yours - but your competitors' as well).