How does CTR and quality affect Cost?

getting to the top

[recar]

Hello

I hope this hasn't been answered in other threads. I did a search but couldn't find an answer.

My question is, which kind of evolution on the CPC can I expect if try to get top positions for rather competitive terms by raising max bids to lets say 3 - 4€. If ads get a reasonable CTR (though I don't not what that would be either) maybe around 4-6% will this on the long run have an effect on my cost?

Will I have to pay less for the some spots, given that the ads quality and CTR are doing fine? What kind of changes could be expected and in which timeframe?

Thanks for your advice in advance.

[Rehan]

Whether the quality score (and consequently the CPC) gets better or gets worse depends on the ad's CTR compared to others that have been in the same position. The last part of that sentence is important.

Read this thread for some related comments:
[webmasterworld.com...]

[edited by: Rehan at 4:51 am (utc) on Jan. 25, 2008]