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As you know, Google last year introduced a feature that dynamically sets the required Minimum Bid for a given keyword (before that they had a flat $0. 05 minimum bid for all keywords). I as being smart but evil at the same time, since it lets Google price its keyword inventory to perfection and capture every penny possible, thus leaving a small margin for you, the bidder. This allowed Google to drop the default minimum bid from $0. 05 to $0. 01, which allows them to capture more listings from keywords that were not ROI positive at 5 cents and above. However, at the same time it protects the high value keywords since Google can over-ride the minimum keyword bids for those terms individually. So for fun, I went to Google today and checked what is the minimum required bid for some people names, here are the results:

pfizer viagra [pfizer viagra]
$1. 00
$0. 50
$0. 50
$0. 30
$0. 30
$0. 30
$0. Pfizer viagra 20
$0. 20
$0. 20
$0. 20
$0. 10
$0. 10
$0. 10
$0. 10
$0. 10
$0. 10
$0. 10
$0. 10
$0. 10
$0. 10
$0. 10
$0. 10
$0. 05
$0. 05
$0. 05
$0. 05
$0. 03
Its really hard to figure out the logic behind their algorithm, if any, so for example pfizer viagra, consider these facts based on the numbers above:
  • George Bush is valued at twice Osama Bin Laden
  • Arnold Schwarzenegger is valued three times Tom Cruise
  • Steve Jobs is worth twice as much as Bill Gates
  • Isaac Newton is worth twice as much as Albert Einstein
  • Alicia Witt is the most valued among this list, she is worth five times Britney Spears
  • Terry Semel, Larry Page, Mark Cuban and Bill Gates all have the same value
  • Among the bloggers I checked, Ken Norton topped the list at $0. 30
  • I, Caterina, Chad, and JenSense were tied as the cheapest bloggers, at $0. 05 each
  • Poor Udi Manber is valued at $0. 03, hopefully will help improve that ;)
  • -- amr


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