For example, the top three positions for the keyword “Mortgage” may be listed as: Position # 1 $1.00 Position # 2 $.79 Position # 3 $.78 In this example the advertiser in the #1 position is overpaying for their traffic. The slight decline in traffic from slipping to the #2 spot may be more than compensated by the improved ROI due to the lower cost per click. Why Bid Gaps AppearOften times advertisers in the top position want to put distance between themselves and their competition to avoid having to check each day to see if they’re still in the #1 position. Example Current bid for the #1 position: $.50 Maximum bid that you specify using “AutoBid” $1.00 The amount the system will set your bid: $.51 It’s important to note that the cost per click may never reach your maximum bid. 78 A “Bid Gap” has appeared between the #1 and the # 2 positions. We don’t necessarily endorse this approach, but the Pay Per Click Advertising game isn’t for the faint of heart. Example Position # 1 $1.00 Position # 2 $. Google’s system involves some trust on the part of the advertiser, since it’s impossible to tell what [...] Effective Keyword Bidding Strategies Software company Pay Per Click Management offers a “CompetitionBuster” feature specifically designed to take advantage of your competition’s “Bid Gaps”.
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