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Old 12th February 2007, 08:32 PM   #1

Join Date: Dec 2005
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Default Adwords Questions

Hello all. I have a couple questions regarding Adsense. Any help would be great.

1.) If you bid .10 per click, but the highest bid is .06. What do you get charged?

2.) Which is better the Search Network or the Content Network for getting traffic?


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Old 13th February 2007, 09:23 AM   #2
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Title has been revised, so I'm editing my original post - all good now.

My name is Duane - TheOnlineMarketingGuy. I share my SEM, online marketing and contests knowledge at my blog and speak at conferences on In-House SEM topics.

Last edited by SportsGuy; 13th February 2007 at 12:23 PM.
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Old 13th February 2007, 12:13 PM   #3

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I switched the title to adwords from adsense

1) With adwords you really never know exactly what you will pay per click. Your max bid is set at .10 so you will not pay above that, but could be anything less.

2) Search. Content usually does not convert for most.

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Old 13th February 2007, 06:47 PM   #4
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1) Logan is correct in that it is difficult to determine exactly how mch you will pay, because bids are now hidden. However, in general (see following for the exceptions), all 3 major PPC programs (Google, Yahoo and MSN) use the same formula with regard to how much you pay ... which is exactly one penny more than the person below you has bid. For example if you bid 0.10 and the person above you bid 0.50 and the one above that bid 0.75 (and there are no other bidders), you would pay 0.10, the person above you would pay 0.11 and the person above them would pay 0.51. If you are the sole bidder, you would pay the minimum bid amount (0.10).

With regard to the old Yahoo system, there was a feature of some bid management software called 'competition killer' that adjusts your bid to be one penny below the next-highest bid so that person cannot take advantage of the 'bid gap' while you still do. For example, the person below you bid 0.10, you bid 0.15 and your competition bid 5.00. Rather than let your competition get 0.16 clicks, your software would adjust your bid, setting it at 4.99 (and adjusts it every time your competitor does). That way you still pay 0.11 and your competitor, above you, pays the full 5.00. Sneaky. This is useless, now, since the new Yahoo is now hiding competitive bids, like Google and MSN.

Note that this bid formula (the 'bid gap') does not apply to the top few positions (5 in Google and Yahoo and 3 in MSN), where the positions are decided by the bid amounts alone, and the bidder pays full price. If you set a MaxBid of 50.00 and were the top bidder, you would be in position #1 and you would pay 50.00 per click regardless of what those below you were bidding. Note that these top positions are not affected by CTR in the same way as the rest of the positions are.

2) In my industry, Search-only is the way to go. However many people claim that Content searches bring them a good ROI, so I guess it depends a lot on your industry ... plus a little luck for not getting into too many 'parked' domains.

James Butler - "Do no weevils"
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Old 25th September 2007, 06:13 PM   #5

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Default adwords questions

You'll pay one cents more than the highest bid. Search content is better in my opinion because the content network can be costly based on the # of impresssions

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