I'm trying to work out the minimum CPC and CTR needed to make advertising an adsense funded site profitable on adwords. NB. Figures are theoretical and any relation to real adwords or adsense accounts is entirely coincidental.
If CPC average is $0.50 and CTR is 10% you would be making $0.05 for each visitor that comes to the site.
Therefore if you pay $0.04 for each adwords visitor you will make $0.01 for each adwords ad that is clicked on.
Therefore anyone with a site with higher CPC and CTR than above can increase their earnings by using Adwords.
Does this make sense or am I talking out of my bottom?