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50 x $1 – (1,000 x 20 cents) = -$200.
Am I missing something?
Yes, Many Things.
Adword bid prices depend upon many factors which cannot be quantified anymore.
There is the new QS.
There are CTR figures/ Budget/ Competitor bidding etc etc
Normally adWords will not allow you to bid for 'unrelated words'. You can't for example bid for 'pig' and sell 'futures'. Adwords will charge you an astronomical figure like $10 for the bid.
MFA's work on high CTR on their sites..upwards of 40%. They also have huge budgets on G adWords and have a long term approach, which allows them to build up a solid long term adWords account with high CTR and low CPC for keywords. They may not always make money, but they must certainly do so on the long term.
The new QS should theoretically knock them of the G radar. But they must have some black hat techniques, which we are not aware of, which allows them to keep on going on the adWords side.
Another way that I've read to increase Adsense revenue is to filter out low-paying MFA ad's - does this work, or does it simply mean you get even lower bids and/or PSA's?
You already have a niche which makes us salivate.. I am soooo 'GREEN'.
You are right in thinking that blocking MFA's will increase revenue. However do ensure you have enough advertisers in your niche.
You can also increase revenues by reducing adblocks.
( However CTR may fall). You need to balance new lower CTR with higher EPC.
You may increase CTR by blending and trying to experiment a bit.
There are many threads on this forum relating to above strategies. Do a search or check the Library threads for more detailed information please.
I've make a little test for this yesterday.
I spend 40 € in Adwords and I earn near 78 $ in Adsense.
So yes, it's really possible but I think :
- You need a really hight CTR
- You need to advertise on low CPC keywords with hight traffic
- You need to really know Adwords for have a CPC as little as possible
- You really need a web site with a lot of content, because hight traffic keywords are very "global", so you need a web site very complete for you sector.
Of course it's not possible to spend 80 € and earn 160 $, because if you want to spend 80 € on adwords to get more traffic you need to increase you CPC and so you will decrease you profit on each clic...
$1 a click for futures trading is nothing - there are some incurable illnesses that command $10 a click - money for ghouls! But remember where there's honey there's a whole heap of wasps...
OTOH, trying to turn AdWords into a short-term profit center by lowballing bids and trying to sell irrelevant traffic back to Google seems foolish. This is a totally different business. You'll have to make site changes that hurt your core business, and it might even get you banned from Google.
If you already have a solid site, don't take your eye off the ball.
Something I developed, thinking about getting a patent on it! ;)
[edited by: TheTraveler at 9:30 pm (utc) on Nov. 23, 2006]
But I don't get Traveler's "CPM a third and CPC the rest".. anyway it sounds like small beer if they're only paying 1-3 cents.
So I'll try Adwords and see how she goes. I've already zapped those slippery-as-DickCheney MFA's (maybe we should just call them Dick Cheneys), with no noticeable result so far...actually logic says Google is right when they say that all you're doing by removing the lowest successful bidders is lowering your CPC...
I tried this about 2 months ago.. with a few sites.. I was spending.. like $60-$70 per month on adwords for the sites and was making back $150-160$ in adsence... and a few $$ in affiliate sales..
but lately adwords has dropped 99% of my keywords.. from $0.10 a click to $0.50 to $5.00 a click... so I have paused most of my sites..
Not sure what to do..
I was thinking about trying Yahoo and msn and other PPC but just have not had the time to test this..
Anyone else in my Boat..
And don't forget to ask how many of them violated the TOS, served junk pages, got reported by angry Adsense publishers that are tired of seeing junk ads on their websites, got banned from Adsense and ended up spending a lot of money on Adwords with zero return ...