In some niche markets there will only be a couple people who place exceptional
value on ultra qualified leads. For example, a Chicago DUI attorney may bid much
higher for the term 'Chicago DUI attorney' than a general nationwide firm would.
If there are only a couple competitors in a market, it is not uncommon for the top
few bids to be $5 or $10 while the rest of them are around 25 cents or less.
For example, if they bid $10 you can bid a max bid of $9.99. If the third placed
person is only bidding 25 cents your clicks will cost you 26 cents each while
ensuring your competitor pays a full $10 per click.
Of course you want to monitor your accounts closely if you are using aggressive
bidding techniques or bid jamming people. Some competitors will be stupid and let
you take their lunch money. Others may be smart and re adjust their bids to bid jam
you. Some will go so far as click fraud, so you need to watch your account closely if
you are bidding aggressively in competitive markets.
Bid to Position:
When you use the bid-to-position bidding strategy, it also hides your full bid price,
only showing 1 cent more than the person below you. Bid to position allows you to
bid a max price and max position. Yahoo! will keep your click cost and ranking at
or below your max.
Bid Jamming:
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