I have a competitor above me (I am no 2). How do I know what his CPC bid is? I want to be # 1 but I dont know what to bid?
sem4u
5:56 pm on Jan 29, 2006 (gmt 0)
There is no way to tell. You just have to experiment with your bids. Bear in mind that position is a measure of CPC and CTR (plus a few other factors these days). You may need to find a way of getting your CTR up as well.
Boesman
6:04 pm on Jan 29, 2006 (gmt 0)
let's say I am bidding $5 and I am second. I heard that he will pay $0.01 more than me. Is that correct? If he bids $20 he will only pay $5.01?
jtara
6:09 pm on Jan 29, 2006 (gmt 0)
He may only pay $2.50. Or $1.00.
It's normalized to the CTR.
Let's say you are #2, and you are paying $5. Your CTR is 5%.
Your competitor is #1. His CTR is 10%.
He's paying $2.51.
Google's getting $5.02 from your competitor for every $5 they get from you.
