Paying $200/month for the keywords thats my domain name, am I stupid?

It all started as a test

[antirack]

My domain name is blue-widgets.com. The company name is Blue Widgets. The keyword is "blue widgets".

If somebody types in blue widgets in Google, my web site is the first entry, the 2nd one is an article on my web site, and the third and the others are just news web site reporting about the web site and reviewing some products sold on my web site.

However, a few month ago a competitor started to advertise not only with the keyword blue widget, but even had "Blue Widgets & Competitor" in the ad text! I have created another ad with the real Blue Widget, and contacted Google for some advise and sent them the Trademark Registration so they have removed the false ad.

Since this happened I have just looked at my own ad appearing at the top and only spot, and people clicking on it. I have also monitored that incredible LOTS of people seem to type in blue widgets in Google and then go to my page. The blue widgets I am speaking about is very unique, so I don't think they look for it on Google. Same as you don't go to Google to type in Microsoft to be surprised that their web site is at microsoft.com. Looking at my stats I have seen that the people look for blue widgets only, nothing else. They don't look for "blue widgets with whatever attached" or for "cheap blue widgets", they look for "blue widgets".

I have now see that I end up paying $180 for that keyword so far ($0.05/click) this month, and wanted to ask if somebody has got experience like this and if I am stupid or if I should let it go. The cost per conversion is $1.73, people are actually buying a lot through that ad! That is also the reason why I didn't bother about the money till now, it's not that I have heaps of money to send to Google.

Thanks for your comments ;-)

[Robsp]

if your ROI is good you are not stupid. We do the same and also have ads for searches we are on top in Google. We are finding that conversions and ROI are very good so keep on doing this.

I guess if a customer even sees that the add and the SERP are the same (which I do not think most people even see, its just us :-) he/she must think, these people must be the place to go for blue widgets.

[kidekat]

Actually you'd be surprised how many people DO go to Google, or wherever, and type in www.example.com.

[edited by: Shak at 3:05 pm (utc) on Jan. 27, 2004]
[edit reason] examplified :) [/edit]

[eWhisper]

If you've tracked your ad, know that they are searching for that exact term and there aren't negative KWs you need to add, and have a positive ROI - then I'd keep the ad running.

Our #4 (and 3 others in the top 20) serp referral string is our company name (and it's spelling variations). Many people goto G and search for M$'s site, or companies that are their names.com.