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  1. #1
    Full Member
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    January 17th, 2005
    There is someone I am competing against on a PPC that uses software that auto-updates their bids. In order to stay in the top position I have to bid an insane amount of money. Anyone have any advice on how to compete against this? There is really good money to be had in the #1 spot, but I could lower my advertising costs quite a bit by doing something about this.

    Thanks in Advance,


  2. #2
    ABW Veteran Student Heyder's Avatar
    Join Date
    January 18th, 2005
    Is there really that much of a difference being in the number 2 spot?

    I never realized it would make that much difference.

    The problem is what you said "There is really good money to be had" as long as your competitor is making money they won't back down either.

    I personally would lower my bid and let them have the top spot.

    Wish I had your problem [img]/infopop/emoticons/icon_biggrin.gif[/img]

  3. #3

    Was the order for SA? or Lb?


  4. #4
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    January 17th, 2005
    ^ BUMP ^

  5. #5
    Resident Genius and Staunch Capitalist Leader's Avatar
    Join Date
    January 18th, 2005
    Personally I'd let 'em have the #1, especially if there is a big price gap between #s 2 and 3.

    Let the competition have:

    All the curiosity seekers
    All the moocher content seekers
    All the clicks from jealous webmasters

    YOU take the real buyers who make it down to #2...

    As for "doing something about it", it sounds like you mean "is it against the terms of the PPCs?"

    The answer to that is <font size="4">NO, THE PPCS LOVE THAT KIND OF THING!</font> They do everything they can to cause bidding wars. Some of them even OFFER auto-bid-to-top as a "service"!!! (Which is even worse than having an bid-to-top button, since AUTO bid-to-top doesn't even require you to click once it's set up) If they can get two sites using that "service" trying for the same term, it's a blank check. That's the stuff their dreams are made of!!

    Really, now that it's bid up the wazoo I'd leave that site holding the bag! Usually the #1 person will realize fairly quick that he/she's paying an extra 50c, $1, or even more than necessary soon after you drop your bid (give it 4 or 5 days). Then they will lower theirs. That'll give you more room to maneuver in the next round of the bidding war. (Lower yours to a bit above the #3 site, but not so low as to encourage #3 to get in on the competition)

    I am assuming that there's a fairly huge gap between position #2 and pos. 3 by now...

    The only time this wouldn't work is if the #1 person is NOT really looking at what's happening, because in order for him/her to finally lower the bid, he/she has to realize that you lowered yours.

    BTW, I still think all bidding wars are poison--there is a point at which the cost of being #1 is so high that there's more actual PROFIT in a #2 listing! And in some categories, the best PROFIT (not total sales but real Profit) is in listings a lot lower than that.

  6. #6

    PPC Engine rule for the me ...

    Run #1 to a rediculous price and retreat to #4, repeat till your #1 then retreat and repeat as needed. [img]/infopop/emoticons/icon_wink.gif[/img]

    #4 position is the one that usually converts.


  7. #7
    Full Member
    Join Date
    January 17th, 2005

    You don't have to be #1 if you hava a catching and more applicable domain name.
    Sometime when I search, I'm looking on the first page and click the site that has 'the more likely I will find' domain name.

    For me,
    Being #1 and #2 is different IF you have the same products/offers (considering you don't have the above advantage - i.e. catching domain name).

    If you don't have the same products or have more relevant product....then Leader is right.....

    My logic is:
    If people try to find something and already click on #1. They will buy get it and does not consider clicking on #2.
    And if they could'nt find any offer on #1, then they won't find it in #2 any way.....

    But hey....being #1 is EXPENSIVE!!!!

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