Are you only buying traffic?

[Andy Black]

Hey Andy, I got a question.

When you are not in top ad position, why does increasing the bids lead to more traffic volume?

You are outbidding your competition, but then don't you pay more per click and get less clicks for the same budget? Why can you get more impressions and clicks for the same budget with a higher bid price? Doesn't a higher bid price also result in higher CPCs?

I'd you're not going to bump up against your budget then bidding more puts you into a higher ad position which typically gets a higher CTR. Bidding more can also increase our impression share (if we're not losing impression share due to rank).

If we're going to hit our budget though, bidding more can sometimes reduce our impression share and get our ads to show less.

 

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[Timo.]

I'd you're not going to bump up against your budget then bidding more puts you into a higher ad position which typically gets a higher CTR. Bidding more can also increase our impression share (if we're not losing impression share due to rank).

If we're going to hit our budget though, bidding more can sometimes reduce our impression share and get our ads to show less.

So higher bids lead to more traffic if you don't already reach your daily budget with the current bids?

 

[Andy Black]

So higher bids lead to more traffic if you don't already reach your daily budget with the current bids?

Yes, if you're not already in position 1 with 100% impression share.

 

[Timo.]

Okay thank you! I understand it now

 

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