Back in December I noted that Google were planning on introducing a predicted average CPC bid option which advertisers could choose to control bids instead of the usual max cpc.
The Inside Adwords Blog has announced this feature will be available in the next few days and will go by the name of ‘preferred cost bidding’. They explain -
Instead of setting a maximum cost-per-click (CPC) or cost-per-impression (CPM) bid, you can set a preferred CPC or CPM bid that represents the average price you want to pay.
Full details can be seen in the FAQ.
On the preferred cost bidding model it seems you can’t incorporate position preference. If this is so, it wipes out any benefit you could get becuase of the loss of relevancy in possibly appearing in the lower regions of the results and thus not getting clicked.
May 14th, 2007