Only two ads - can I bid as low as I like?

[Seamaster]

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I have a keyword I am bidding on for which there are only me and another person bidding.

Does that mean I can bid 0.01 per click and I'd still be on the page (below the other guy)?

Or is there a minimum I have to pay and if so how is that set?

Thanks

[paulb567]

Google sets a minimum bid for each keyword based upon a combiniation of the keyword, your quality score and a bunch of other hocus pocus. You can get this minimum bid down to 1p by acheiving a 10/10 quality score and a decent CTR. Otherwise expect this minimum CPC to be somewhere in the 2p-5p region (unless you're doing something wrong).