Companies running google adword ads for their company name, do they pay next to nothing?

Dec 07 2009 Published by eranio under adwords

Google adwords charges more or less by popularity of a keyword. But isn’t it true that only pepsi can buy pepsi adwords? All the sudden now it makes it not popular, as there’s only 1 bidder for that keyword. So how does that impact the cost per click then? Is the cpc next to nothing? If not, what’s the justification, as there’s no competing bids? I appreciate a sound answer to this, thanks.
PS: I’m not asking because I’m going to run ads. I’m curious about it from another perspective.
derr I know what the point of a campaign is. all I wanted to know was, if only the organization can buy ads for a certain keyword, then does that make the price down to a few pennies. I swear, people on yahoo answers simply can’t answer the questions. They always gotta try to figure out why you’re asking and answer a different question I didn’t ask.

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