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?
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.
