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Adwords for a Adsense funded Site

Using Adwords to make $ from Adsense

     
2:02 pm on Feb 26, 2004 (gmt 0)

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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?

milenko

3:41 am on Feb 27, 2004 (gmt 0)

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I run a content site that operates on these principles - as long as the visitors to your site click on your Adsense ads you're fine.

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...

4:56 pm on Mar 3, 2004 (gmt 0)

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My EPC is lower, my CTR is lower, and my CPC would be roughly double. But it's an interesting calculation to find advertising that might make this model sustainable.