First off, bid jamming is something you can do in Yahoo! Search Marketing (formerly known as Overture). Bid jamming is when you increasingly raise your bid amount to just a penny below the top bidder who has foolishly set their maximum bid amount way too high. This forces the top bidder to pay that max bid amount per click, whereas you only have to pay one penny more than the bidder underneath you. Of course, this can cost the competitor a lot of money quite quickly but, if you are not careful, you can get bid jammed yourself in the process.

Gap surfing is a tactic for ensuring your bid is no more than it needs to be to maintain your target rank. So if you are happy to be lower than #1 position and you don’t want to pay too much, you might want to use this tactic. In a nutshell, you scan through the top ranking ads and find the big gaps in bid prices and you bid at the bottom of one of those gaps — e.g. the biggest gap within the top five positions.

I would recommend staying clear of bid jamming, and I would employ gap surfing only if you have a bid management tool that supports this capability. I wouldn’t try and accomplish it manually. Particularly since Google AdWords doesn’t even show you everyone’s bid amounts, so you’d have to continually revise your own bid amounts and monitor your position until you figured out the gaps.

As you can see, there is a lot of complexity and subtleties in pay-per-click (PPC) search advertising, and we’re only scratching the surface here. It goes on to include sophisticated web analytics, and constant automated revisions of bid amounts based on the web analytics data (e.g. the technique of dayparting). Trying to manage pay per click campaigns without the proper tools is like showing up at a gunfight with a sword.

Well, there’s been a lot of controversy as of late about buying text links. Blogger Phil Ringnalder published a scathing post accusing publishing house O’Reilly of being a search engine spammer. O’Reilly’s founder, Tim O’Reilly, responded to the accusations on his own blog. Google engineer Matt Cutts posted a comment to Tim’s post admitting that Google has decreased the voting power of sites like perl.com and xml.com and downgraded the reputation of some of their outbound links. Ouch!

Matt’s (and presumably Google’s) position was loud and clear:

If you don’t want your own site to suffer the same fate as O’Reilly, you better tag your link ads with a rel=nofollow attribute so that you don’t pass any PageRank score to your advertisers.

In my mind, that doesn’t seem quite fair. Website owners and bloggers work hard to build a content-rich site with good PageRank score. Google’s black-or-white stance on this equates to a diminished earning ability for these websites by insisting webmasters cut off the flow of PageRank to their advertisers. This of course decreases the value of the link ads to those advertisers, and consequently the revenue likely to be realized from them. Granted, no savvy advertiser is going to buy a text link ad solely based on PageRank score, but PageRank does factor into the equation.

This makes me wonder what Google’s position is on BlogAds.com is, which is part banner ad, part text link ad. A good blog ad contains useful content. Why shouldn’t the blogger be allowed to “vouch for” (by not tagging the link with nofollow) the links contained within that ad if they so choose?

Most “white hat” SEOs such as Christine Churchill believe text link advertising is a legitimate practice. I agree with her.

I wonder what Google would do if all the websites across the Internet decided to take all their banner ad inventory they have and bypass the click-tracker redirect that counts all the clickthroughs. Suddenly all these new votes would start counting all over the Internet for commercial advertisers and sponsors. Wouldn’t that throw Google for a loop!

So what is the bottom line here for bloggers who are looking to advertise? It’s basically this: be discriminating in your link buying. Text link advertisements are not inherently evil. Just don’t buy ads on sites where any of the other advertisers on the site are misleading, deceptive or misrepresentative. By that, I mean things like the following:

1. Setting the ad’s link text to some keyword-rich phrase that doesn’t accurately reflect the page that is linked to.
   e.g. An ad on SeacoastOnline.com proclaims “The North Face” but that isn’t The North Face!
2. Linking the ad text to a landing page that is built for search engines and not for people.
   e.g. the “Discount Vacations” ad on DailyItem.com points to one of Orbitz’s many “doorway pages”.
3. Hiding or obscuring the link so human visitors can’t see it, only search engines.
   e.g. Doing a “View Source” on the home page of PRNewswire.com reveals these hidden links:
   
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<a href=”http://www.icrossing.com”>Search Engine Marketing</a>
<a href=”http://sev.prnewswire.com”>Search Engine News Release Optimization</a>
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And it goes without saying that you should refrain from such practices yourself when you advertise.

This post is based on material taken from on my own blog across three separate posts: Link buying - ethical or unethical?, Buying links - Google’s perspective, and Buying link ads - the ethical debate rages.