adwords and adsense

[ineedmoney]

Not that I am considering doing this (I feel its unethical, just my opinion) but I would like to know if anyone has tried to up their cpc by raising the value of there keywords in adwords, seems a relitivly easy way to get those running ads on your site based on thoses keywords to have to up there max cpc if they want to stay active, ofcoarse it would cost you some money initially. Maybe this is one for ASA? Sorry if this topic may have already been discussed to exuastion, I'm new here.

[Sootah]

You would have to actually SPEND money yourself to up the value of the keywords. It's not as if you could set the price way higher, set the budjet to only allow a click a day, and expect all the other advertizers to panic. For you to cause a change you'd have to pump out some dough, and that defeats the whole purpose, doesn't it?

[ineedmoney]

"ofcoarse it would cost you some money initially."

The basis of this is that you would initially spend some dough to up the keywords value and take the best ad posistions, once the advertisers caught up, you could then suspend your ads and rake in the money, once again I would just like to say, this is not something I plan on doing, just a thought that crossed my mind.

[LifeinAsia]

But shortly after you drop your ads, the other rates will go back down to what they were before, so what's the point. It's highly unlikely that during the short window before the prices come back down that you will earn as much money as you spent to try to drive prices up.

[ineedmoney]

"But shortly after you drop your ads, the other rates will go back down to what they were before, so what's the point. It's highly unlikely that during the short window before the prices come back down that you will earn as much money as you spent to try to drive prices up. "

But why would the prices go back down? The advertsiers would have up'd there max cpc, so why would they go back in and change it for no reason? Are their google alerts on adwords that tell you that you can lower your max cpc and still mantain your ads posistion and activity? I think not. They would have to manually go into adwords and check. I think it makes more sense that the busy advertiser re-sets his max cpc after noticing that his ads have become inactive, then gets back to their busy life.

[jomaxx]

It's an auction managed by Google... When you artificially increase the demand, the price goes up (or people stop buying if they can get equivalent value elsewhere for less). When you lower the demand back to its equilibrium level, the price goes back down. Advertisers don't automatically get charged their maximum bid.

[ineedmoney]

yes, but in the case of having more than 1 advertiser, wouldn't the max cpc stay up? I guess for this to work, atleast 2 advertisers would have to raise there max cpc? Anyhow, I'm not trying to argue wheather or not this would work(Ifeel it would), I was just asking if this was something that people had/would try? It seems like something that could compromise the whole system, so I felt it needed to be addressed.

[greedy player]

if your selling widgets and you want more people to buy your widgets so you turn to adwords to grab people who want "cheap widgets today" then you may find your adsense will be about widgets too.

So in theory isn't that normal for adsense and adwords campaigns to cause a increase in bid if your both a publisher and advertiser in the same field.

think about it ineedmoney:/0

[LifeinAsia]

You have to remember that the max bid is the maximum bid that advertisers are WILLING to pay for their clicks. That doesn't mean that's what's being charged. Most of the clicks on our words don't come anywhere close to their max bids.

Try to understand that AdWords is not a stright auction system like Overture. Google factors in max bid as only one factor in evaluating if/when/where an ad shows. CTR is one of the biggest factors.

If AW could be abused that easily, the big pockets would have been doing it long ago.

[humblebeginnings]

This a theroretical model I have never thought about, but I can't imagine it will work.

The advertising market is a huge international system. A small time player (assuming you are one) is very unlikely to influence the price of advertising space significantly.

It sort of feels like I go to the petrol station to buy as much petrol as I can, in order to raise the price of petrol. I guess you need very deep pockets to get that done. And as soon as the price of petrol is high enough for you to monetize it, the market will be flooded by parties who wish to do the same thing.

How much money are you planning to spend initially to raise the price of widget advertising space?