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Old 08-26-2007, 03:51 PM  
d-null
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Join Date: Apr 2007
Location: NY
Posts: 13,724
cpc starts low

if your ad doesn't perform to their liking (which seems pretty algorithmically difficult to determine exactly why), then they generally keep raising the price for the same keywords, even if there is no competition for that keyword

so for example, one day you might be paying 10 cents cpc, things will be going well you think, then they turn you off and ask for 20 cents cpc, that might go for awhile then they ask for 50 cents, then they ask for 1 dollar, then 5 dollars cpc

same keyword

once your price cpc goes up it seems to not want to come down again, and they will raise your prices for all your keywords at the same time

I think they like companies like Amazon that have a big budget and get alot of clicks when people do a search, they say if you generate alot of clicks your cpc goes down, but the formulas they use are mysterious
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