Recently I set up my first PPC campaign. I understand the daily budget but I am not understanding how the default bid works. I assume I am bidding against other sellers for a position on page where my product will appear for a potential click. Example if I have a default bid of .50 and another seller has a default bid of .75, that other seller will get a better position on page. Is this how it works? What am I bidding for? Also, when seller’s set up PPC campaigns how do they decide what their default rate would be?
I keep asking this question is various groups but I can’t get a clear explanation of how the default bid option works. Or, maybe I’m just too slow to get it. Anyone care to help me?