Welcome to WebmasterWorld Guest from 220.127.116.11
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?
A few things to consider:
1. Is the profit per click on the Adsense ads high enough to justify paying .10 - .20 per click for Adwords (this is a minimum value in the industry I target)?
2. Is your content such that it inspires visitors to either visit a sponsored ad or bookmark your site?
3. Is your click through rate for Adwords strong enough with the keywords you target to sustain your campaign?
I think this is a very viable strategy, but your site content has to turn over your traffic efficiently enough to make it work...unfortunately, I have no advice on how to structure your site to do that...