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High Daily Spend Ups Position?

Has anyone found this to be the case?

     
9:47 am on Apr 27, 2006 (gmt 0)

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I have recently heard that there maybe a relativly easy way to out-position your competition simply by upping your daily spend limit. Now, I complelty dismissed this as complete nonsense which I'm sure it is, but i thought I would post it up anyway to see if anyone else had heard of it.

Basically it comprises keeping your cpc very low (i.e. 10p) but upping your daily spend to around 1k per day. Apparently Google positions you higher as it wants more people to click on your ad, generating them more revenue and using up more of your daily spend, but turn off your account when it hits your limit (ie. 100).

I havn't experiemnted with this because knowing me I'd forget to turn it off and spend all of the 1k, but I couldn't help be curious, it was from quite a reliable friend.

10:09 am on Apr 27, 2006 (gmt 0)

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as far as i have tested this is completely false.

I increased our budget on one account from $150 to $5000 and still got the same number of clicks for the same cost as normal. meaning that we have hit a peak for this account. just not enough people searching.
the only way we increased the number of clicks was to increase our max cpc to get a better position but obviously this increased our overall spend.

i'd lve to hear if anyone has any different opioions.

briggidere

11:10 am on Apr 27, 2006 (gmt 0)

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Well , if the Daily Budgeted adspend is high , the system does try to exhaust the budget . The ad impressions certainly increase. The ad display on the content network may be particularly affected. It may increase many folds. This does not mean that the budget will be exhausted but the G system will certainly try!
4:23 pm on Apr 27, 2006 (gmt 0)

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And these impressions are increased by automatically upping the position regardless of max CPC apparently.
4:36 pm on Apr 27, 2006 (gmt 0)

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Impressions are increased by showing you more often (instead of slowing your impressions if you're on target to overrun your budget)... it has nothing to do with the average position.
8:21 pm on Apr 27, 2006 (gmt 0)

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Yes, we upped our budget so it would show 24-7 but it does not affect ad position _unless_ our competitors' ad budgets are depleted, then we go higher. We only increased our budget so the ads would show anytime, not on the premise of a top position.
8:28 pm on Apr 27, 2006 (gmt 0)

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I've been doing something like this for a couple of my clients in the past couple weeks - basically I jacked the daily budget WAY up past the point that it would ever reasonably use, but lowered the CPC so that I would be in around #5 to #7. I am not going for position, I'm going for impressions/clicks, because I've got a sneaking suspicion it's not as important to be in the top 3 as it used to be. My impressions and clicks are through the roof for one client, and sales up about a third to half again as much. The other client - which is a service rather than a product - it doesn't seem to be working so well for that one.