PPC Bid Management Strategies - Take advantage of bid gaps
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Normally, bids are separated by a penny or two. Bid gaps occur when there's a significant price increase to move up one spot in the PPC rankings. Looking at the top bids for "nike shoes" on Overture's system:
1) 0.51
2) 0.50
<-- Bid Gap
3) 0.33
4) 0.32
5) 0.31
<-- Bid Gap
6) 0.16
7) 0.16
<-- Bid Gap
8) 0.11
9) 0.11
10) 0.10
11) 0.10
Is it worth almost twice the price to move from spot #6 to spot #5? Now that Yahoo is showing more ads per page and fewer search results, it is probably not worth it. Big advertisers blindly set a CPC across a large group of keywords, causing these bid gaps. Take advantage and fill a bid gap. For example, if your initial max CPC for this phrase was 32 cents, maybe it's worth only bidding 17 cents.
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