Often 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. Sometimes when companies upload keywords into their Pay Per Click Advertising program they set all theird https://bmmagazine.co.uk/ bids to the same amount, regardless of where their competitors have set their bids.
The most common reason why some PPC advertisers create “Bid Gaps” and overpay for their clicks is they’re not aware of the tools available from third party vendors, or the PPC Search Engines themselves to avoid these gaps.
Eliminating “Bid Gaps”:
Some Search Engines like Google automatically eliminate “Bid Gaps” by ranking ads using a combination of click through rate, and the maximum bid established by the advertiser. Google claims this allows them to offer advertisers the best ranking on the page at the lowest cost, while guaranteeing the ads they display are relevant to the keywords users are searching on. Google’s system involves some trust on the part of the advertiser, since it’s impossible to tell what you’re competitors are bidding. If your competitor has done a good job optimizing their ad copy to achieve a high click through rate, their ad could appear above yours, even if you’re paying a higher cost per click.
Other Pay Per Click Search Engines like FindWhat.Com offer an optional ‘AutoBid” feature. This feature allows you to specify the maximum you would be willing to pay per click for each keyword, and the system will automatically adjust your bid to $.01 more than the next highest bidder. If your competitor raises their bid the system will continue adjusting your bid until it reaches you maximum bid.