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I'm toying with increasing my max CPC really high on all my keywords so ensure my ad gets shown in the top spot on page one in order to draw more clicks.

I think this will be a good way to quickly figure out whether the ads I'm writing have a decent CTR and, more importantly, whether the landing pages I'm building are converting.

Since I can set a max daily budget for my campaign, I won't risk breaking the bank.

I can't think of any drawbacks, personally. Am I missing any?

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up vote 4 down vote accepted

Two if's:

If you raise your bids and your competitors also raise their bids to try and match your ridiculous numbers, then you're potentially inflating the market for your keywords on a long term basis with no guarantee that the price will come back down. Depending on your business that could cost you a significant amount of money over a long period of time.

If your competitors don't budge on price when you make your change, then there won't be negative price effects, because you'll only pay their max cpc while you're on top.

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Really the only concerns I'd have with that are sample size and time. The more you raise the CPC the fewer clicks you get for the spend, you'll want to make sure you still get a significant enough sample size to determine how things are working. Additionally customers convert differently at different hours of the day and days of the week, if you blast though your budget in one day you may be dropping high profit keywords that simply convert on a different time/day then tested.

That said success at PPC only comes from constant testing and optimizing, so if you're willing to put up the cash for the high CPC as a test then you'll be better off in the long run because you'll know what happens, rather then guessing.

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Another options sometimes, depending on how high your CPCs are is to use other user testing tools to get feedback, here are some inexpensive options:

www.usertesting.com
www.pickfu.com
www.feedbackarmy.com

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This will screw the entire market/niche and increase the CPC. Once the price increases in Google Adword, It will take more time to come down.

This will affect you financially as well your competitors.

But Google will enjoy making more money by making you all to compete with each other.

decent CTR

If you want to have a good CTR, then start writing good Ads which will attract more clicks for lower price. Whatever company you represent everyone will run out of budget one day. In long run, this will help.

**Only VC funded company can spent money like crazy in Adword **

whether the landing pages I'm building are converting.

You can check the landing page by bidding at 2nd or 3rd position also.

I have been designing landing pages to increase performance for more than 8 years. The following points are important & which has to be conveyed to your customers / visitors within 2 ~ 3 seconds. (Yes, really visitors need only 2 ~ 3 seconds to decide whether to stay in this page or exit it)

  • Trust (Customer should trust your company & service)
  • Price (Customers are cost sensitive)
  • Service (What guarantee you give them after buying)
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