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Generating cyclical revenue - AdSense funding Adwords

Adsense > funding Adwords > generating traffic > more Adsense: and so on...

   
11:18 am on Jun 23, 2003 (gmt 0)

10+ Year Member



Hi folks,

I'm new to advertising, and I started Brett's 1 year plan for website development 6 months ago and am now getting about 1000 users a day sitewide. I just applied for Adsense yesterday and have been pleasantly surprised by the revenue coming in. I have a content-based, free information site, and the targeted text ads offer a better combination of revenue and relevant information than any other system I've seen.

Wouldn't it be possible to have a cyclic revenue-generation process, where the revenue from Adsense is used to fund PPC campaigns, which thus generates more Adsense clicks? For this to happen the PPC campaigns would have to pay for themselves, generating more revenue than they cost. Even so, if I ran an Adsense and Adwords campaign together, surely the Adsense could easily give 50% back for your Adwords campaign. And if you sell a product, you can make up the difference with that.

In other words:
1.- setup Adsense
2. - Buy Adwords with the revenue from AdSense. (Filter yourself from the results on your own site I guess.)
3 - have this extra traffic pay for the Adwords by
a) more Adsense clicks
b) buying a product
4. Go to step 2

Someone must have thought of this before, how practical do you think it might be?

All the best,

Jeremy

11:31 am on Jun 23, 2003 (gmt 0)

WebmasterWorld Senior Member vitaplease is a WebmasterWorld Top Contributor of All Time 10+ Year Member



A perpetual money machine works with ignorant advertisers,

Something similar was mentioned here with third party PPC: [webmasterworld.com...]

Eventually the markets might get so "efficient" that the "creative-middle-men costs towards Google" will make it unworkable. (Arbitrage makes markets efficient - that is what currency dealers call their added-value in life ;).

That is the advertiser showing on your pages with costly ads will buy the cheaper ads you bought at a cent higher.

12:28 pm on Jun 23, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



This can obviously work, but it won't work for everybody.
It's not a perpetuum mobile, because the system eats up energy (=money) from other advertizers who spend more than they earn, or don't participate in adsense at all. But if you limit your daily adwords budget to your average adsense revenues, then you can clearly get more traffic at neutral costs.
2:07 pm on Jun 23, 2003 (gmt 0)

10+ Year Member



Google could encourage using AdSense revenues to buy AdWords by offering AdSense payment by "gift certificate", a la Amazon's affiliate program. Perhaps they could offer a small bonus if you choose gift certificate payment, to make it a more compelling choice than cash. But I'm sure they've thought of this...
5:33 pm on Jun 23, 2003 (gmt 0)



Google could encourage using AdSense revenues to buy AdWords by offering AdSense payment by "gift certificate", a la Amazon's affiliate program. Perhaps they could offer a small bonus if you choose gift certificate payment, to make it a more compelling choice than cash. But I'm sure they've thought of this...

I can see two reasons why Google might not want to do this:

1) PPC ads are unlikely to be cost-effective for content sites. If Google encouraged content-site Webmasters to spend their AdSense revenues on AdWords, it would quickly earn a reputation for preying on the ignorance of clueless Website owners.

2) An AdSense-revenues-for-Adwords swap might be worthwhile for e-commerce sites, but AdSense isn't really a program for e-commerce sites: It's geared toward content sites.

5:37 pm on Jun 23, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



An AdSense-revenues-for-Adwords swap might be worthwhile for e-commerce sites, but AdSense isn't really a program for e-commerce sites: It's geared toward content sites.

The combination of adwords and adsense is absolutely perfect for people who run both content and e-commerce sites next to each other. Actually, many sites out there fall in both categories at the same time, which makes the equation even simpler.

6:22 pm on Jun 23, 2003 (gmt 0)

WebmasterWorld Senior Member jimbeetle is a WebmasterWorld Top Contributor of All Time 10+ Year Member



Interesting stuff, just what I've been kicking around in my head for the past couple of days.

The combination of adwords and adsense is absolutely perfect for people who run both content and e-commerce sites next to each other.

Think you're right if done correctly can be very complementary. I'm going to run a very targeted AdWords test next week (think I found a couple of opportunities in a pretty competitive sector). And I plan to apply for AdSense this week. However, I'm going to *keep AdSense off* the money pages targeted by AdWords. Should work.

7:56 pm on Jun 23, 2003 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



One big problem. If you are a commercial site, putting Adsense there is most likely going to cost you money - not make it for you.

What would the most relevant ads be for your site? Those of your competitors perhaps?

9:00 pm on Jun 23, 2003 (gmt 0)

10+ Year Member



One big problem. If you are a commercial site, putting Adsense there is most likely going to cost you money - not make it for you.

Well, Amazon.com is the definitive commercial site, and they have AdWords on their search results pages now. It's possible they'll come to regret the experiment -- I think it makes their results pages look even *more* ridiculously overcrowded -- but I doubt they're willingly losing money on it.

europeforvisitors, I agree, AdWords is impractical for most advertising-funded content sites. It might be a different story if they had a 1-cent minimum, but 5 cents is hard to justify for bringing in one new visitor. That said, I run such a site, and I use AdWords from time to time to promote specific new features to [what I hope are] expert users that might help spread the word.