We are seriously considering to make a few trials here with it. I read the ToS and the Google rules and they seem pretty fair to me. What I especially like is their Discounter mechanism that prevents you from overpaying for your positions vis a vis your nearest competitor.
I would just like to read some of your experience in the real life, before really going into it in a big way.
Thanks to anybody that can help me in this.
As far as the issue of fairness goes, I think their level of fairness is unparalleled. I can only state this because I view the Untied States Navy as a force that attempted to destroy my life.
I was openly advertising this in Google AdWords until they pulled my listing. At that point it did not cost me any further money and I actually get recredited with the few dollars I spent up to that point.
How much more fair can you get?
My best bit of advice would be to make sure you understand how the negative keywords feature works so you can improve the targeting of the searches where your listings appear.
If you don't get specific, you will find yourself showing up in very strange places that you may not want to be. Google keeps charge of your click-throughs and they help determine the look of your "interest bar" on your listing and how often your ad is shown.
It's been a worthwhile experience for me, but can get expensive if you don't manage your campaign right. Good luck!
The bid price * CTR to determine rankings in the ad section is probably better than most, but judging by some of the ads at the top of the ads section with mostly grey bars, the most relevant ads definitely do not rise to the top, just the ones that make Google the most $$$ (i.e. highest bid price that can manage a 0.5% CTR).
Seesm like if your ad can pull a 5-10% CTR from spot #3 or below its probably the best one on the page and ought to move up.
Also check your own site that it is easy to navigate and for searchers to find the items or service they are looking for.