Thursday, August 21, 2008

What is Bid Jamming ?

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.

0 comments: