a penny above Min CPC

A good plan? Or may as well bid the Min

[Hubie]

I'm basically only willing to pay the smallest amount I can for a bunch of decent keywords. Assuming an extra $0.01 per click wont break my bank, should I raise my bids one cent above the min CPC? The thinking here is that many people just do bid the minimum, and my MIN + 0.01 would give me higher position:-)

Thoughts?

[King_Fisher]

Works in offline auctions, should work on line too.
Maybe 2 cents more would be better.

[Rehan]

Higher position isn't always better... Sometimes the last ad on the right side gets more clicks than the ones just above it.

[Rob3rt]

Your MAX CPC is being taken into consideration when google calculates your QS (quality score) and you QS again determines your position and min CPC.

Personally I think hitting 1-2 cents above the min bid does get your more traffic, but does not mean you have the best position which results to conversions or ROI.

Bidding 1-2 cents over your current min bid will give you good traffic for a short time, untill you have burned your CTR ad history and will move down the list slowly since your current CTR is catching up.

Since your CTR is getting worse due to low max cpc (lower rankings), you are lower on the resultpage and get less clicks your min CPC will raise due to bad QS from having a bad CTR.

Its a circle

[Hubie]

OK, the "circle" makes sense. So do I play "the circle" for all it's worth? or should I just pick a strategy and stick to it?