The slight decline in traffic from slipping to the #2 spot may be more than compensated by the improved ROI due to the lower cost per click. They could lower their bid to $.80 and still maintain their #1 position, while saving $.20 on each click. Example Current bid for the #1 position: $.50 Maximum bid that you specify using “AutoBid” $1.00 The amount the system will set your bid: $.51 It’s important to [...] Effective Keyword Bidding Strategies 78 A “Bid Gap” has appeared between the #1 and the # 2 positions.
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