Quote:
Originally Posted by Terry Van Horne
You see this a lot because if 5 people all bid $1 and the sixth bids .20 the fifth spot pays .21 etc. So no matter what the top or default bid is set at, the click is charged .01 more then the spot below it. There are other factors like QualityScore and CTR but that's pretty much, IMO, how the top bids prices get pushed up much higher than the actual cost.
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So if my bid is .85 on a keyword and I am receiving impressions and some clicks as I tweak things out and one day when I go in to the CP and I see $15.00 (truely - this is what I witnessed on a particular keyword) as the high bid on that keyword, is this someone bidding a rediculous amount to scare bidders off and position their ads to show up more often and in better position?
Having said that, say I lose sight of reality and as a test, "up" my bid to a second highest bid of $10.00 on that keyword. If someone uses that keyword phrase which triggers our ads to show and they click on the high bidders ad, is that account charged $10.01 for that click?