Do you trust that Google's Price System is 100% accurate?

[bostonseo]

I have a search term that rarely gets clicks beause it is pretty low volume in impressions. I had 4 clicks earlier this month at an avergae CPC of $2.56 but noticed that today I got a click at $6.97 which is almost all of my max bid ($7.00). The clicks have occurred at basically the sme position so why would today's price be almost 3 times as much as I paid just last week? I think there are technical issues from time to time that basically overcharge advertisers - do you agree?

Simple yes or no question - Do you trust that Google's pricing algorihtm is always accurate?

[Manga]

No. Never have.

[Israel]

No Way!

I had an Adgroup that had an unfortunate surge in clicks recently. I was bidding 25 cents, slightly on the high side, but was following that theory we've heard to bid high early to gain a high CTR. Ran up over $20.00 in clicks, sold 6 to earn $12.00 - quite a loss!

Wanted to cry since this wasn't the only Adgroup like that, so I lowered this bid to a nickel. Position didn't change. For many keywords, I'm still in the blue or nearby.

So now if I get those 90 clicks and only sell 6, I've spent $5.40 but still made my $12.00 - that means profit!

Problem is Google, despite my MAX CPC of 25 cents, should have reduced what I was paying as my CTR held steady in the double digit range. Instead, for the most part they still charged me most of the original 25 cents.

That ain't how it used to work unless my memory is failing me.

Israel

[Atomic]

Accurate? They would probably come up with better numbers if they simply rolled dice. Or is that what they're doing now?

[teenwolf]

Rolling the dice + public company = not good for us. Enough said.