A few weeks ago, we reported that the "promotion algorithm" for Google AdWords is changing. Instead of using the actual CPC, Google will use the maximum CPC. Similarly, as Barry reported on Search Engine Land, Microsoft is following suit.
Forum members offer interesting feedback. Not all advertisers are that savvy and may be bidding up prices without knowing the consequences. Busting the budget, thus, would be difficult.
The [competitors that are] not well versed... probably have no handle whatsoever on ROI, in fact I would presupppose that it's the reason they are bidding up the keyword in the first place. In which case trying to bust their budget makes no sense, they'll just up their limits.
But with more PPC engines taking on Google's lead, perhaps these strategies are good to look at.
Forum discussion continues at Search Engine Watch Forums.
This post was written on October 3rd and is scheduled to go live on October 4th.