So what is bid jamming it’s something you can do in Overture(oops Yahoo search marketing). Bid jamming is when you raise your bid amount to just a penny below the top bidder ..
some people think that placing a 25 GBP bid to get top slot for a 5 GBP a bid keyword is a good idea.. lol well it isn’t
Bid Jamming : Ok, you pick the keyword you want to bid on and find that :
#1 is 25 ( what they pay is 5.01 ) <- silly boy !
#2 is 5 ( what they pay is 4.51 )
#3 is 4.50 (these guys pay .10 )
but you want to play in this keyword. So if you bid 24.99
#1 is 25 ( what they pay is 25.00 )
#2 you 24.99 (but you pay 5.01) <- Bid Jamming
#3 is 5 ( what they pay is 4.51 )
#4 is 4.50 (these guys pay .10p )
Is this is dangerous #1 could drop his bid and jam you, but if you watch it like a hawk #1 will stop bidding silly and the price should even out at the market vaule ..
DaveN
10 Comments
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29th September 2005 @ 14:37
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Any advertiser who is lazy or incompetent enough to allow themselves to be bid-jammed deserves what they get. Bid jamming is a simple tactic used by people who are smart enough to realize that tracking ROI at a keyword level and with high frequency is the way to go.
Keywords are like equities, but unlike equities, many keywords don’t have enough smart investors to maintain an efficient bid/ask spread. When bid jamming is no longer a viable tactic you’ll know we’ve reached an efficient ppc market.
-Shorebreak
29th September 2005 @ 15:01
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The “Being #1 is everything” folks get jammed all the time…
29th September 2005 @ 17:44
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lol! We call that a wedgie.
29th September 2005 @ 18:55
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You mean:
function rename GoTo {
oops Overture (double oops Yahoo search marketing);
}-d
29th September 2005 @ 19:52
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It’s a risky strategy not just because No.1 could turn around bid jam you back, but No.3 could start bid jamming you as well.
30th September 2005 @ 16:42
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Most people that end up being jammed or jamming don’t even realise they are doing it or receiving it.
When software vendors sell their software on the basis of this being a “cool” feature of the product it is scary and I sat with someone senior form Overture a while back when a well respected bid tool company was extoling this feature.
Everyone is losing out in some respects, the integrity of the model is questioned, the stupidity of the $25 advertiser, the cunning of the jammer.
Laziness and ignorance are costing advertisers millions of dollars.
30th September 2005 @ 17:54
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I wouldn’t use an automated tool to jam… human judgement will toast any software I’ve ever seen, especially when co-operation is involved
3rd October 2005 @ 12:52
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9
Especially when the jammers start working together to take out the unknown…..
4th October 2005 @ 16:39
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10
This feature is definately a dangerous one to use unless you are really on top of your listing 24/7 which even with maximum caffeine is gonna be hard.
I am not sure I agree with the suggestion that human interaction will beat the software… better a human being in control of the software and watching what’s going on ready to make changes fast…
Anyway let’s be honest it’s mostly the big spenders who are being managed by bid monkeys at larger agencies who are gonna get shafted by this - and most of them won’t even notice
14th October 2005 @ 16:59
Copyright © 2004 - 2009 David Naylor. All rights reserved |
This has been around for years, ever since Overture introduced their bid-gap removal system.
Bidding wars that were escalating prices all of a sudden turned into downwards bidding wars