‘How Can Game Theory Help Your PPC Marketing?’ – Small Business Trends
Larry Kim says, “I was blown away when I heard that the U.S. Federal Trade Commission is suing 1-800 Contacts for anticompetitive behavior. The contact lens company allegedly struck deals that prevented rivals from bidding on PPC ads on Google and Bing using their trademarked terms and variants.
According to the FTC complaint:
“Beginning in 2004, 1-800 Contacts secured agreements with at least fourteen competing online sellers of contact lenses providing that the parties would not bid against one another in certain search advertising auctions.”
The FTC is concerned because these reciprocal agreements could have resulted in reduced price competition in search auctions, higher prices for consumers, and misleading search ads.
Basically, 1-800 Contacts is in trouble because they were applying game theory to improve their PPC results“.
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