Just like the friends at the bar in A Beautiful Mind

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All of the talk about customer match email targeting has been about how an advertiser can target their existing customers and prospects. This same technology could conversely be used by a competitor to exclude their campaigns from going after your existing clients. customer match game theoryFor this one you most certainly would want a third party to facilitate the transaction, such as when you have an escrow account for a transaction between two parties.Continuing to use AT&T and Verizon as our theoretical example, AT&T agrees to upload its customer list of emails into Verizon’s AdWords account. Verizon does the same with its customer list.



Both companies agree to exclude those people when targeting their AdWords Greece WhatsApp Number Data campaigns.By doing this, both AT&T and Verizon could avoid wasting so much money on these customers, while simultaneously substantially relieving upwards pressure on keyword bids for everyone else in the niche. Again, hitting each other below the belt is just so stupid and wasteful.Theoretically, Game Theory Benefits EveryoneThese are just two examples of how one might apply game theory to the AdWords auction.Basically, this approach benefits everyone in the niche. Not only does it benefit the two (or more) parties that work together, but it also benefits everyone else in that niche because there will be substantially less pressure on auction dynamics.







Remember, the price you pay per click is directly proportional to what other advertisers were willing to pay for that same keyword. game theory in ppc marketingJust as one advertiser can screw up a niche with irrational bidding, the reduction in bid pressure by splitting up inventory based on audiences through non-competitive or exclusionary targeting would have the opposite effect.In the most competitive industries, if just the top two or three companies in a vertical agreed to such deals, they might all come out way ahead. .What do you think? Larry KimMEET THE AUTHORLarry KimLarry Kim is the founder of WordStream and CEO of MobileMonkey,