incremental bidding?

[acrosstheuniverse]

If your keyword bid is $1.10 and you bid 60 percent (or $.66) to target 25- to 35-year-olds, the cost per click could be as much as $1.76 (1.10 + .66) when your target is matched. Or if your keyword bid is $.75 and you bid 10 percent (or $.07) to target 25- to 35-year-olds, the cost per click could be as much as $.82.

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that is an example about incremental bidding.
but i have a trouble understanding the meaning of KEYWORD BID

'if your keyword bid is $1.10'

$1.10 is BA(max.CPC)? or PPC(actual price)?

[adCenterRep]

Hi acrosstheuniverse,

Incremental Pricing is applied to the keyword Base Bid that you set on the keywords.

Example:

Keyword: life
Base Bid: 1.00

Incremental Pricing: age 25 - 35 years: 30%

New Base Bid at a maximum of $1.30

The incremental pricing does not apply to the "cost per click"

Hope this helps to straighten this out!

adCenterRep