Now suppose that you don't move. And are still in the #3 rank.
Your cost is still .25 per click.
My question is, now that you raised your max by .10, does it affect the #2 bidder that is above you. And if it does, how much more does he have to pay? If he has to pay more, is this not a way for the bidder below to inflict higher costs on those above him without incurring more expense himself?
I have been curious about getting an answer to this question. Any insights?
But if everything in your accounts were equal, if you keep increasing your max cpc I think his cost will increase until the cpc x quality x clickthrough calculation means you jump above him, at that point his cpc will drop down to whatever it needs to be to beat the next position below him.
Seems kind of odd that you could inflict financial pain on the guy above you without paying more yourself.
No, this system is called "auction". The fact is that you are willing to pay .10 more - if you competitor was not you would get #1. But because he is willing to pay, say, .5 more than your highest, he stays #1 but has to pay more.
Jan
It is important to take the max CPC literally.
Whatever amount you put in, you should be willing to pay.
If you bid $50 to make the person above you pay $50.01, you could wake up the next day to find that you are the one who has paid $50 per click.
Rob.
Has anyone else seen these games being played?
Yes! And I think it's the fun part of the work... If I cann afford it I try to compete, if not I leave him #1 and take #2 - quite easy.
Jan
Basically I am not trying to be #1, but find a nice place where you can get a decent amount of inexpensive clicks. Whether that #1 or #5 depends on the keyword.
