This means you're willing to pay up to $1.00 CPC for your adwords ad placement - which in your case sounds like you're #1. If a competitor was willing to pay $.89 for their ad you'd still be #1 but it would cost you $.90 for that position. The competitor at $.89 would be #2.

If your competitor is willing to pay $1.01 CPC then your ad would be #2 since your max is $1.00.

This is the way I understand it.
-Scott

*Unless* they have better (more relevant ad copy/ad title/content on landing page, because in this case they could conceivably outrank you despite having a lower max bid.

That's ok - kind of along the lines of this topic anyway -
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Make sure you state what your prefered position is - have you done this?

Quite a bit like gambling - how much will you wager for that return?

By stating position and CPC from .55 to 1.20 I am near the top --- took a few days to process.

True - this is why I strive for the best content. With the best content you could be the #1 regular listing just under the sponser position.

Then you could have the sponser position and regular #1 position and hope that some people click the regular listing. If they click the regular listing it doesn't cost you more money!

Is this achieved by having key words on the destiantion page?
IE I have my ads directed to my home page - does the non-ad Google search for relevancy based upon amount of historical clicks which resulted in matches?

IE search www.google.com for: pagid 944 brake pads
Paragon products comes up 4th, non-paying

that's right kaefer.
We have kw phrases that when searched for on google, show us in the blue box top sponsor position, in the froogle results just under, and at the top of the natural search results.

We sell a lot of those products ;)

Pretty much.

Your keywords list is HUGE....but the amount of text on your pages is small compared to your keywords list.

Put that entire list into content - articles, real world testing, etc. and possibly get rid of some of the duplicate words in the keywords list.

Check out the free tools on http://www.bruceclay.com. These will steer you in the right direction...

Neat site.....diggin into it now