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After consulting with many people I've never seen so much confusion regarding how bids are determined by Google.

Many people believe that you pay what your Max Bid is and others believe that you pay 1 penny significantly more than the

person below pays.

Neither of those are now actually true. It's rather a combination of those. This dilemma has lead many to cover method to much for there bid place because they do not begin to see the prerequisite in tracking offers.

I want to give you an example:

Bidder 1: Max Bid is.55 but gives.51 per click.

Bidder 2: Max Bid is.50 but gives.21 per click.

Bidder 3: Max Bid is.20 but gives.06 per press.

Bidder 4: Max Bid is.05 but pays.02 per press.

Bidder 5: Max Bid is.01 and pays.01 per click.

Hopefully you are seeing a pattern here. The simple truth is that you actually pay only one penny significantly more than anyone below you's Maximum Bid.

However why is it important to monitor bids you may ask if Google makes you only pay 1 cent more than the Max Bid of the individual below you?

In the senario above the very best value situation is being in #2 because #2 is spending 30 cents less per click than bidder number 1. The bet space difference between situation #2 and #3 is 15 cents.

In order to have nearly as numerous clicks as place number 1 for over half the fee. If you have 1,000 ticks position #1 is paying $510 and position #2 is paying only $210. You are protecting over half which means increased profit margins for the company.

But here a bidder can use a dirty trick to improve just how much you're spending per bid with only a little known process that we call Bumping!

Let's say you are Bidder 2 and you become accustomed to spending 21 cents per click.

(And more and more visitors are) he could Enhance what you are spending if Bidder 3 is smart.

Their Max Bid can be increased by he/she to 49 cents, while still only spending 6 cents per click. Every one of the sudden you're paying over increase per press than what you were paying before.

With Google being more and more competitive this really is happening more often and is used to cause you to over pay for your ticks, put you out of business or decline your position, so they can take over position #2 for a diminished cost than what you're paying.

You really should check your entire offers to be sure that no one is "BUMPING" you, In order to avoid having this eventually you. However, because everyone is always changing their bid prices over the several key words you have, it's extremely hard to keep up with checking this without a particular software... After consulting with many people I have never seen so much confusion regarding how estimates are determined by Google.

Some individuals believe that you pay what your Max Bid is and others believe that you pay 1 dollar more than the

person under pays.

Neither of the are in reality true. It's rather a mix of these. Since they do not see the need in tracking bids this dilemma has lead many to pay solution to much for there bet place.

I would like to give you an example:

Bidder 1: Max Bid is.55 but pays.51 per press.

Bidder 2: Max Bid is.50 but pays.21 per press.

Bidder 3: Max Bid is.20 but gives.06 per press.

Bidder 4: Max Bid is.05 but pays.02 per press.

Bidder 5: Max Bid is.01 and pays.01 per press.

Hopefully you're seeing a pattern here. The simple truth is that you really spend only one penny a lot more than the individual below you's Maximum Bid.

But then how come it very important to monitor offers you may ask if Google makes you only pay 1 cent a lot more than the Max Bid of the individual below you?

In the senario above the very best value position has been in #2 since #2 is paying 30 cents less per press than bidder # 1. The bid space difference between place #2 and #3 is only 15 cents.

In order to have nearly as many ticks as place #1 for over half the price. When you yourself have 1,000 clicks position #1 is paying $510 and position #2 is paying only $210. You are keeping over half this means increased profit margins for your organization.

But here a bidder may use a dirty trick to improve simply how much you're paying per bet with just a little known technique which I call Bumping!

Let us say you're Bidder 2 and you get used to paying 21 cents per click.

If Bidder 3 is smart (and more and more customers are) he could Boost everything you are spending.

He or she may increase their Max Bid to 49 cents, while still only paying 6 cents per click. All the sudden you are paying over increase per press than what you were paying before.

With Google being more and more aggressive this is happening more usually and is used to cause you to over pay for your ticks, put you out of business or drop your position, in order that they will take over position #2 for a lowered cost than what you are paying.

To prevent having this occur to you, you really need to monitor all of your estimates to ensure that nobody is "BUMPING" you. However, since most people are constantly changing their bid prices over the several keywords you've, it's almost impossible to steadfastly keep up with monitoring this without a certain software...