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Originally Posted by WiredGuy
If I choose not to bid at those inflated rates though, then someone is or else the price would come down (assuming equal CTR's for other advertisers). So someone is paying the higher CPC's out there and they would make more per click. Question is if there's less to pick from now if Google would make the more overall since there's less options. I'm not entirely sure but I do believe Google would still come ahead overall...
WG
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I agree with you, it's most likely that the don't make changes that turn out to be hurting their revenue, but I was just wondering about it. Time will tell if this is a good thing or a bad thing for us.
I have to say that to me it seems that it's a little harder to start with Adwords now, without having any experience. Before you could just start with bidding .05 on any keyword, now you have the risk that you MUST start with bidding .50 or higher and that might scare some people. If that's true it can turn out to be a good thing, less advertisers is less competition.