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Glossary term: Bid Jamming
A technique used in
paid search advertising with fixed bids. Bid jamming allows an advertiser to pay less than his competition for similar ad positions while holding the competitor's costs high. An advertiser "jams" his competitor by bidding one cent less than them, thus forcing them to pay their entire bid price for each bid while the advertiser pays one cent more than the bid immediately below his. If the next bid is much lower, his competition can be spending substantially more for the higher ad position.