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Google CPC In Constant Motion

Experimenting with Cost Per Click in Google Adwords

     
7:48 pm on Feb 7, 2007 (gmt 0)

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QUESTION: Is it possible to really find out the 1 cent mark that makes the difference between position 1 and position 2 in Google Adwords?

Today I've been experimenting with my bid in adwords for a single search term, "home made widget jelly".

I started out number one for the term. My high bid was set at $6.00 per click, but in my reports I could tell I was really only paying $4.12 per click to aquire the number one position.

Well, I began lowering the bid to see at what point I would slip into the number 2 position on Google PPC. And after a few tries of varied intervals, I saw the result lower to position 2 when my bid reached $3.70.

Great, I had a starting point to move back up. After a few more rounds of higher/lower, I thought I had finally discovered the position 1 - 2 fulcrum point at $3.90.

BUT.....

When a little while later, I noticed that I had slipped back to the number 2 position, although neither my bid, nor my adtext had changed. After a little more experimentation, the position 1 - 2 fulcrum was now at $4.06!

So again, in your experience, is it possible to really discover the balancing point between 2 positions in Google PPC?

8:05 pm on Feb 7, 2007 (gmt 0)

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It depends on how competitive the term is - where your Quality Score ranks among your competition - and how long your ad (and those around you) have been running.

For extremely volatile terms where you might not hold a dominant advantage or where many ads are relatively new - even if you did determine the precise "breaking point" between two poistions - due to the volatility, it would cease being valid by the time you analyzed the data. But - if you do hold a dominant edge - or if the term is not very volatile ... it is certainly possible.

 

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