Quote Originally Posted by Chilihost
he is prolly getting so few clicks for that keyword that his costs justify the occasional signup he would get. Its not necessarily a bad strategy...if it pays off!

cheers,
Luke
I have to agree with Luke on this one.

We tested Adwords out a year or so back and whilst we didnt spend an awfull amount on it, we found that sometimes, placing a higher bid on a less popular keyword worked as well as, if not better than placing a low bid on a popular keyword.

Its all about balancing out your ROI, if you get 10 hits that cost you $1 and make one signup at $35 thats better than 1000 hits that cost $.10 and make you 1 signup.

Just my 2 cents

Regards,

Lee