Minimum Bid Formula
The click through rates of the advertisement in the past.
The relevance of the keywords used on the advertisement to the group the advertisement belongs to.
The quality of the advertisement landing page.
Minimum Bid
The lowest dollar amount set by a pay per click ad program, such as Google AdWords, for either a specific keyword or type of keyword.
Minimum Bid: The least amount that an advertiser can bid for a keyword or keyword phrase and still be active on the search ad network. This amount can range from $0.01 to $0.
Google requires a minimum bid of 5 ct but even with that an advertiser's budget can go out of control pretty fast. Therefore Google allows to limit his daily budget to a certain cost.
The highest bid for a given keyword achieves the top spot in the PPC search results. In Overture, the top three bids are "featured" on Overture's partners' sites, including AOL, Altavista, Infospace, and others. The minimum bid amount on Overture is ...
 See also: Market, Keyword, Marketing, PPC, Click
  
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