Adwords Select Strategy

[JonnyWales]

Assuming the following :-

Site 1 sets a max cost per click of $0.40 and achieves a CTR of 2.1%. The rank is then 0.4 x 2.1 = 0.84.

Site 2 has a max cost per click of $0.20 and a CTR of 6.4% giving a rank of 1.28.

In this situation, and assuming no one else is bidding on this term, site 2 appears above site 1.

As controller of site 1 can't I simply increase my max cost per click to $0.65, thus achieving a rank of 1.37 and go to the top of the listings? I won't need to pay $0.65 however as Adwords specifies that I'll only pay a cent more than the listing beneath, ie. I'll only pay $0.21 for the top position.

Do I understand this correctly or is there a gap in my logic somewhere ?

[Ross]

Hi Jonny,

That logic looks sound....only problem is how do we know what anybody else has bid as a max cost per click, I didn't think that it was shown anywhere ??.

Ross

[Funfone]

Be careful with this one. I set my limit per click rather high the other day to increase my exposure and low and behold I was paying .34c per click originally then straight up to .86 c per click.

So the difference between 2nd and 1st was definitly not worth the extra cash.

__________________________________________________
Funfone
www.funfone.net

[Chico_Loco]

I am a real cheapy guys - get a kick outta this.. I never set my MAx cost per click above the minimum of 5 cents...

Save that cash guys!!