Forum Moderators: martinibuster
Would it be worthwhile to bring in traffic to my new website via Adwords and if so how much should I bid for traffic and basically how would you do the calculation?
Here is a rough estimate from the beginning of the month: (on average)
My CTR is %10, eCPM is $11 ,
does that imply that I should bid less than 10%*$11/1000= 1.1 cent on Google Adwords to make a profit?
For the ones who invest money to bring in visitors via Google Adwords my question is: How do you know when you should start advertising with Google Adwords in order to make a profit through Google Adsense?
Arbitrage will either work or it won't.
Depends on your topic(s)
It may take G a weeks to figure out the landing page quality for you adwords campaigns.
If you escape the dreaded LPQ hammer then you will make money if you have topics that get $1 clicks occasionally.
It is unlikely that you'll get enough 1c visitors to make the effort worthwhile (you'd be better off collecting bottles along the road).
If your content is crap or your adwords ads are misleading you'll find that your users will complain to google by clicking on the 'ads by gooogle' link on your website. It won't take many complaints to get killed with LPQ score. Many of those 1c bids will go to 15c (if you are lucky).
It used to be easy to make 1 to 3 return (300% return).
I suspect very very few people can do that now - especially me!
In any case, I do think AdWords/AdSense arbitrage is a shortsighted business strategy
Well then, never did too much bragging on this forum.
But how shortsighted is it in your opinion that I am not sure whether to use my arbitrage money to buy real estate in Holland or in France?
Any ethical and legit business strategy that results in good cash is in no way shortsighted.
1) I am going to buy Adwords clicks for 1 cent.
How do you get 1 cent clicks from Adwords? The lowest bid is 5 cents, no?
[edited by: Raymond at 10:17 pm (utc) on Jan. 17, 2007]
The lowest bid possible will depend on what currency your AdWords account is in (mine in £sterling will allow me to bid as low as a penny) together with the keywords your are bidding on and the "quality score" your landing page and ad achieve for the keyword concerned.
Bidding 1 cent - even if it is allowed - may not be enough for your ad to be enabled on the search network. Even if the ad is enabled, it may rank too low to achieve any significant impressions.
But if your site has good original content and provides real value to a visitor (without relying on the ads), then it should achieve a good Quality Score and hence allow you to bid relatively low.
1 cent clicks are doable but very hard in volume and not an effective strategy for most.
There probably is a sweetspot where you buy ads for 3-4-5-6 cent and get a 40-50% click throug rate to ads that give you 5-6-7-8-10-12 cent. You then need to build volume. What you really want is to make more out of these vissits.
If you also have 30% sign up for you newsletter AND another 30% open a new window with your instant free report (with ads) and 10-20% post something in your forum (that the engines will pick up and give you organic traffic) then you are on your way to building a lasting relationships future free traffic and something lasting.
