Pay Per Click Bidding - Gap Bidding
A bid gap is usually a $0.05-$0.10 or larger gap between two bidders. Often you will see such a gap between the 3rd and 4th bid when the top 3 positions are featured at Yahoo.
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Pay Per Click Bidding - Position Bidding
Position bidding is when you have your pay per click bidding manager keep your website at a specific bid position. This can be a very useful technique if you want a particular internet visibility.
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Pay Per Click Bidding - Minimum Bids
This technique is to set your pay per click bids at the lowest possible bid allowed by that search engine. (The minimum bids vary, please see Pay Per Click Search Engines for more details).
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Pay Per Click Bidding - Minimum Cap
A minimum bid cap is the lowest bid you wish to make for a particular keyword.
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Pay Per Click Bidding - Maximum Bids
Maximum bidding is setting your bid to the max allowed bid by the individual pay per click search engine.
This is not suggested for almost any keyword. There are very few instances when this is a worthwhile technique.
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Pay Per Click Bidding - Max Cap Bidding
Maximum bid caps define the maximum amount you want to pay for a pay per click bid. This is very useful to define no matter which of the other rules based bidding strategies you are using.
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Pay Per Click Bidding - Largest Gap Bidding
This bidding strategy is good for finding a low price and
maintaining a higher visibility than some of the competition.
The pay per click bid manager will look for the largest
gap between any two competitors and place your bid in between them.
Pay Per Click Bidding - Gap Jamming
Price pinning is also known as gap jamming. This strategy is used in conjunction with first gap bidding. It’s most commonly used with Overture auto bidding.
Your pay per click bid manager will look for the appropriate gap, and then only bid $0.01 below the highest competitor in that gap.
An example:
Pay Per Click Bid Prices:
| Position | 1 | 2 | 3 | 4 | 5 | 6 |
| Bid | $1.00 | $0.98 | $0.97 | $0.75 | $0.23 | $0.22 |
This example is for gap jamming with first gap bidding. The first gap is between advertiser 3 and 4. Regular first gap bidding would place your bid at $0.76, meaning advertiser 3 would only pay $0.77 for their bid with auto bidding enabled.
Gap jamming would place your bid at $0.96. This would cause advertiser 3 to pay $0.97 and you to pay only $0.76 ($0.01 above the next lower bid).
This is a useful technique to force advertiser 3 to either lower their bid, thus getting position 3 for less money (and can be used in many instances to lower overpriced bids) or to have their account used up quicker, thus forcing their account offline, and you taking the number 3 spot for the price of the number 4 spot.
With this technique, it’s best to update your bids often as advertiser 3 could lower their bid by $0.02, which would price pin you, and they would be paying the lower price for high exposure.
This technique has a lot of benefits, but can cost you if you are not careful, so know your competition and bidding strategies well before attempting this pay per click bidding strategy.
Pay Per Click Bidding: First Gap Bidding
This bid strategy is to find the highest position at the lowest price.
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