Graywolf bloged that Adwords requires you to bid very high to enter a competitive area. He spoke with reps at Google through email and then at Webmasterworld PubCon in Boston. He noticed that his only choice was to show up in was to bid enough to be number one. He could not lower his bid a little to get lower like 2 or 3. Google told him he had to pay the high clicks for a few days for them to decide what his “quality score” was.
I have never understood why Google does things the way they do. They don’t think advertisers are smart enough to advertise right. It is very hard to work with Adwords. Your bid seems to have nothing to do with what you pay or where you rank. You can bid $2 and be number one and after a few days you see that you are paying $1.40 per click. You lower your bid to $1.40 you move to number 3 and you pay $0.90 a click. I have a term I want to be number 3 on and it is hard to stay there. I have to move the bid constantly all over the place to get it just right. I don’t want to pay $2 a click but I know I have to bid $2 to only pay $1.40. If I wanted to pay $2 I would have to bid higher than $2.
Google says we do this because our users are important to us and we know what they want. I am so tired of this attitude in Google. They could care less what the user actually want They are only concerned what they think the users want.