PPC 1st position

I have a product that is usually in 1st position with Google Adwords. I know being 1st isn't everything, but Google will only allow one similar affiliate domain in Adwords per keyword. I have this other person who periodically keeps trying to outbid me which makes my add not there since Google only allows one similar domain. So I have to up my bid and then it comes back. I have been in 1st position for about 3 years now. I currently bid $2.50, but I really pay average .44cents/click. Since I have had this position for 3 years, would someone who tries to outbid be paying more than my average .44 cents? The fact I've had this add running for 3 years have any weight? How can I keep my add up at number 1??? Do I have to just check it every day and up my bid so it appears again? Thanks for some advice.

I believe that with Adwords money rules. Nothing much you can do unless you use some dirty tricks to get rid of competition.

If I was in your market....I would try my best to get a better CTR that what your is.
Then I would be rewarded from Google with cheaper KW prices and higher positioning thus taking your customers as much as I could.

It matters not much about your time on a particular adwords account because what Google is looking for is relevancy. Use an ad split tester and try to get your ads CTR as high as possible.
Then don't worry about this guy so much.
Don't put all your eggs in one basket.

Peace,
O

Double your daily budget and you will get much more clicks and impressions than
you've ever had before, you don't need to up your bid just show Google your
willing to spend the most money.

Also split test your ads and your CTR will rise and Google will reward you with
a higher Q score which will mean you pay less for the same position.

Don't get in a bidding war with this guy he wont last long anyway.

My CTR for the past year was 21% and 8%. I just doubled my daily budget...up to $100. What is the best way to split test my ad? I only have one main add I run for 2 different list of keywords. This is a very specific niche with only 1 main keyword. 2 ad groups because it can be spelled 2 differnt ways. So how to split test?