Now 1 day later i see that i'm getting the premium spot (max bid:1.35) for an average of 9 cents per click!
That's 2 cent lower than i had been paying for the adwords on the right side that was on 0.23 cents and i'm getting more clicks and higher ctr!
What's up with this?
<added> Just more business for me and for G, i have no complaints.</added>
I'm also suspicious as to whether this might be done to boost an AdWords click-through on the day of launch to reach your daily budget, if, say, you launched a campaign late in the afternoon... :)
ctr was around 5% first day, today the ctr is around 6.5%, plus the cpc is anoter cent down to 8 cent.
CTR*CPC=revenue for Google.
If you can raise your CTR then Google will display your ad higher for the same or less CPC because it earns them more to do so. It's a virtuous circle.
This is no longer always a true statement.
After the last change to the Google systems, implemented on march 14th, a Sponsored Link can be bumped off of the page completely by an AdWord that Google "Calculates" as paying a higher "Relative CPM"
This usually only applies to advertisers paying a relativly low CPM for their sponsored links campaigns, or people on a "Remnant" buy on Google Sponsored links.
If a Google Employee who reads this has further clarification on this policy, Id be interested to hear the exact details.
In my opinion,
While raising your bids does create a cycle with your competitors, as long as your return is positive...keep on testing bids/return rates/CPCs.
Thanks
