Auction-based ad serving is a clever idea that seems to have the best interests of both ad servers and advertisers in mind. Ads are ranked and costs are calculated according to simple, well-defined rules. But, as is often the case, even systems with a few simple rules can create some complicated situations. Most advertisers on Author informationEric SmithEric’s bio: Eric Smith joined PPC Associates in September 2012. He has been running enterprise scale SEM accounts since 2011, specializing primarily in e-commerce. Eric graduated from the University of California, Berkeley with a B.S. in Microbial Biology. Prior to his entry into digital marketing, he worked in a research laboratory. In his free time he likes to swim, read, study language, and travel.The post Bid Wars – Why Overbidding Leaves You Vulnerable appeared first on Search Engine Journal.