before i go off sharing the plan let me set forth this disclaimer. i'm still learning the ropes with web marketing in general and adwords in particular. this theory might be dumb as they come. take it with grain of skepitcism. or, perhaps this is common practice and nothing new.
the theory is to launch campaign with the following properties:
ad text written well enough that whatever clickthroughs it generates are decently targeted.
launch this ad against gazillion of generic cheap high traffic keywords.
this supposed to bring in cheap mediocre quality traffic. not as targeted as expensive keywords, but better than some other well known alternatives.
this adwords game gets more exciting by the minute!
jothelion
someone is buying Adwords to feed their AdSense addicted web site?
Bring them into the site as cheaply as possible, and hope they leave by clicking on a link with a higher EPC.
ie. You bring them into your site with an Adwords ad that costs you only 5 cents a click. Then, you show ads/links, such as AdSense ads, and hope that visitors will leave the site by clicking one of those links that will earn you (hopefully) more than 5 cents per click.
saw the words addicted and adsense in the same sentence
I believe that is in reference to the publishers doing every possible thing to raise EPC, CTR, and doing everything possible to get more traffic into the site to click those AdSense ads. They probably earn the vast majority of online income through AdSense - there are those who earn a full 100% of online income strictly through AdSense - those are sites addicted to AdSense because without that income, the site wouldn't earn a dime.
Is this new?
I mentioned the phenomenon yesterday in a different thread - surprisingly no reply yet. I see a increase in this type of business. Second and third PPC maket. PPC brokerage. People buy cheap traffic to resell expensive traffic.
I see it happen for AdWords > AdSense and for AdWords > Espotting. Some fellow WebmasterWorld member had his budget burned in minutes because some chaps were placing AdWords for his cheap keywords linking to a site with espotting listings for his most expensive keywords ...
Integrity and relevancy of the results are all that should matter.
If your buying it cheap and selling it on expensive then the bigger the gap between the two the less relevance there is.
That was one of the reasons we ceased content matching and broad matching as soon as we saw the results.
someone is buying Adwords to feed their AdSense addicted web site?
The problem with this model - if you can call it that - is that the click through percentages make it tough to pull off. With AdWords, you pay out CPC. Of those visitors that arrive to your site, only a small percentage will click back out on your AdSense links. Let's say that your click through percentage on the AdSense side of the house is 5%, or one out of 20. If your CPC for AdWords for that visitor is $.05, you would need average AdSense revenue per click of $1.00 to break even.
As I talk myself through this, it seems to me that this a reason that Google doesn't disclose the revenue associated with certain ads/terms in AdSense, and forbids us from talking about numbers. If they did dislcose an AdSense publisher's revenue per term, you could turn it into a cash machine.... let's say your click through percentage (AdSense) is 5% and that ads serving on a page about mortgages are earning you $.40 per click (fictional numbers). This means you are making about $0.02 per visitor. If you can buy AdWords traffic at $.01, and assuming that that traffic generates an AdSense click through percentage equal or better than 5%, then you are operating in the wonderful world of arbitrage.
Whoa...
So, if you pay 5cents to have the 8th position in adwords and hoping you get adsense ads of the top3 bidders?
The adwords position is irrelevant - all that counts on the cost/adwords side is your cpc.
On the revenue side, all that matters is what you are earning per AdSense click, and what your click through rate is.
Over time, you WILL make money if:
AdWords CPC < AdSense Pay per click * click through percentage
and you will lose money if:
AdWords CPC > AdSense Pay per click * click through percentage
Of course, we don't know the AdSense pay per click for specific terms / pages of content, though you could figure it out if you only ran AdSense on one page.
My sense is this whole thing is a waste of time in that, 1) it's not a real business model; and 2) I'm sure Google knows exactly in what areas the spread is dangerously large between the pay out per AdSense click term (e.g. Mortgages), and a cheap AdWords term (e.g. home?), and has an algo in place to flag it.
It's still fun to talk about an endless supply of visitors that cost you $.01 and pay you $.02.
3. If I am a Google AdWords advertiser, can I sign up?
Yes. We are excited to help you find yet another way for you to increase your revenue. You can even use the same login name and password so you don't have to keep track of multiple Google logins. Editing your login information in one account will edit in the other as well.
Let's say I pay for cheaper "product info", "product review" and "free product sample" keywords and then send them out through "buy product", "purchase product" and "product wholesale".
This is PERFECTLY legitimate. I take the risk for qualifying the visitor, the advertiser payign for more expensive words gets more targeted traffic, because those that aren't interested in buying aren't clicking on, and the advertiser saves the risk of loosing money on poor traffik, which in this case I'd take on.
Seems very parallel to how advertising and sales works in the offline world.
SN
Here is the rub: even experts in their chosen keyword field, don't know what keywords really produce.
Huh?
Fact is, I know some pretty top notch folks in the pharm space that believe that 95% of the sales in their field come off of one keyword. Strange that friends of their are making 10k a month off of 4-8 keyword phrases (most of which they average than .01cent a click for because no one targets them).
Now does it start to make sense why se's like Google and Overture - and aff programs like CJ/BeFree want to see your conversion data? It's why they are all building out those roi trackers. Not even they know what are the hidden gems in the keyword forest.
Talked to a reliable chap at a conference this week buying AdWords and Overture for about .25 cents a click and his only source of income is serving AdSense ads on his site. He said he was making over 5k a month.
By the same token, I'd be interested to know what he is spending total to get to that point; it's pretty easy to make 5k a month doing anything if you are spending 100k to do it...
When brett said he is making 5k he meant the what tat guy nets
Oh, really? Man, don't I feel like an idiot... Now I understand. Thank you so much for pointing that out.
Just FYI: To me, spending 100k means he spent 100k and turned 105k to make 5k. Simple math. The point I was trying to make is that while it might be possible, the returns seem like they would be very small on a per dollar basis, and therefore require a huge number thereof; and a huge dollar amount to match.