Bid Gaps

[bostonseo]

Dramatic bid gaps seem to be happening more frequently on Overture and I think I know why. Because Overture's system default's you first place when you add a new term, that is creating these gaps. For instance, an advertiser
added a new term on say Feb 8th and at the time the current first place bid was $5.25, so when a new advertiser added a new term then they automatically went in at $5.26. The person who was $5.25 is now in 2nd place and a few days later moves their max bid down to $3.76 but the first place Max bid does not re-adjust their bids.

Is anyone else thinking that these bid gaps have Overture
finger prints all over them somehow? Prices are going up faster than I've seen in the last 4 years. Looks shady to me.

Thoughts?

[cline]

IMO the bid gaps are because Overture has a decreasing share of the traffic and therefore advertisers are spending a decreasing amount of time managing bids.

[Wlauzon]

IMO the bid gaps are because Overture has a decreasing share of the traffic and therefore advertisers are spending a decreasing amount of time managing bids.

I think that is a major reason.

We have seen prices drop on many of our keywords - some by a LOT. In one case our cost went from about 90 cents to 12 cents for the second place spot.

Just the opposite of what I see on G ads, so for the first time in 2 years we are moving some money from Google ads to Overture. At least for a while, as long as they stay cheap...