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In addition to tools offered by PPC Search Engines to eliminate "Bid Gaps", there are several third party Bid Management applications that will do trick. Atlas OnePoint offers a sophisticated Bid Management tool to effectively manage your bidding strategy across 40 different Pay Per Click Search Engines and shopping comparison sites. BidRank is another tool we recommend for optimizing keyword bids, and avoiding "Bid Gaps".
How You Can Profit From "Bid Gaps":
While creating "Bid Gaps" for your own keywords can be a costly mistake, you can often improve metrics of your Pay Per Click Advertising program by taking advantage of gaps that appear in bidding strategy of your competition.
Position # 1 $1.00 Position # 2 $ .79 Position # 3 $. 78 A "Bid Gap" has appeared between #1 and # 2 positions. You can either pay $1.01 to lock in #1 position, or bid $.80 for # 2 slot. Given these alternatives it may make more sense to opt for # 2 position. The slight decline in traffic from slipping to #2 spot may be more than compensated by improved ROI due to lower cost per click.
If you want to play hardball with your competitors by driving their cost per clicks higher, while locking in good positioning for your ads at a lower cost, you can manipulate 'Auto Bidding" tools to your advantage.
Position # 1 $1.00 Position # 2 $. 79 Position # 3 $. 78 In this example, if you used any of "AutoBid" features offered by many of Search Engines and set your maximum bid to $.99 ($.01 less than your competitor in #1 position), system would put you in # 2 position at $.80 ($.01 more than next highest bid), while your competitor would still have to pay $1.00 for # 1 slot (since system would consider your $.99 maximum bid to be next highest bid, and adjust your competitor's bid to be $.01 more). Software company Pay Per Click Management offers a "CompetitionBuster" feature specifically designed to take advantage of your competition's "Bid Gaps".
We don't necessarily endorse this approach, but Pay Per Click Advertising game isn't for faint of heart. You need to have a well thought out bidding strategy so you don't overpay for your clicks, while still getting traffic volume you need to reach your goals.
Stan Hauser is a leading expert on effective Pay Per Click Advertising strategies, and creator of http://www.pay-per-click-advertising-guide.com