I was messing around with traffic estimator, and for a given term it returned 'Max CPC: USD $104.52'. I thought Maximum Maximum CPC was $100. If multiple bidders get up to that level, do the rules change?
This is a new one on me, PPCBidder, and I haven't been able to duplicate it. (Of course I don't know what combination of keywords and country/language targeting gave you this result, either.)
I'm 99.5% sure that the Max CPC limit is still $100.00, and I'm not able to exceed that amount in my own account, having tried it in several different ways. (Reminder to self: Edit that $100.00 Max CPC Ad Group right after posting!)
I'll pass on your comments to the tech folks, though, as I would've expected the Traffic Estimator to 'respect' the Max CPC, and have never heard of a case in which it didn't, till now.
Very interesting, thanks for posting. ;)
AWA
You were set to US dollars as opposed to Canadian dollars, right? (I did see that that is what you wrote, but just wanted to double check.)
The Max CPC for Canadian dollars is $130.00, btw.
AWA
Let's say that the bidder in currently in the #1 spot actually has a $100 max bid. Let's also say they have a very good ad, and are (obviously) in good position. This means they have a very high rank # (CTR x MaxCPC).
Now the traffic estimator has to use the same formula to estimate the cost that it will take you to get into that spot. But (my guess) the difference is, if you've never bid on that word before, it has to insert some average CTR in that equation. Which would mean that if someone really had bid $100, and had an above "average" CTR, the traffic estimator would tell you that you couldn't get into that top spot for less than $100. Even though in actuality no one is paying more than $100/click.
(I'm using $100 as the max bid because it's easier for me to explain that way. It could quite conceiveably be less)
Given the info, that would be my guess. Feel free to point out any glaring faults in my logic! ; )
haven't been able to duplicate it
Yep, USD. Try the most abused example, 'meso...' ;)
has to insert some average CTR in that equation
archie - maybe that is it, although the Bid the tool suggests to attain #1 is usually lower than the Max CPC shown. The only other thing i can think of is maybe the keyword has some weird history dating way back to when premium slots were sold separately on their own program. That raises another question though, if the Max shown is the current max or some previously attained max...
Not that the original issue really matters though as it affects such a miniscule % of advertisers, just something interesting.
I relate it to the 'auto-grow' system for databases and such too, if the program works that way it would be ok. (e.g. Two advertisers exceed $90 or some threshhold for x clicks or something so system upgrades max allowed bid to $110 for that term)
