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.]

O'f zua'si puv huoph vu canq aq eheoptv zuas cafhiv vjip coffoph nusi qavt zua opvu e johjis ef qutovoup xjodj vzqodemmz hivt e johjis DVS. Coffoph nusi dep emtu opdsieti uas onqsittoup tjesi (og xi'si puv mutoph onqsittoup tjesi fai vu sepl).

Og xi'si huoph vu jov uas cafhiv vjuahj, coffoph nusi dep tunivonit sifadi uas onqsittoup tjesi epf hiv uas eft vu tjux mitt.

Tu johjis coft mief vu nusi vseggod og zua fup'v emsiefz siedj zuas feomz cafhiv xovj vji dassipv coft?

 

[Andy Black]

Tu johjis coft mief vu nusi vseggod og zua fup'v emsiefz siedj zuas feomz cafhiv xovj vji dassipv coft?

Zit, og zua'si puv emsiefz op qutovoup 1 xovj 100% onqsittoup tjesi.

 

[Timo.]

Ulez vjepl zua! O apfistvepf ov pux