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Will Adwords costs balance out Adsense profits?

Discussion in 'Google AdWords' started by axeldrummer, Apr 12, 2006.

  1. #1
    There's been obvious discussion that as more publishers enter the market, the price per click given will start lowering due to more site targeting and a slower increase in the number of advertisers vs. publishers.

    Do you think the adwords side will pick up eventually? meaning more and more people will start using adwords (and more profits return to us publishers)?
     
    axeldrummer, Apr 12, 2006 IP
  2. forumcare

    forumcare Peon

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    #2
    Well, I use adwords and adsense, the money spent on adwords, far outhweighs anything made from adsense. It might balance out if google didn't take their 'middle man' cut, but otherwise I think you will always be on the losing side if you run both programs.
     
    forumcare, Apr 12, 2006 IP
  3. Notting

    Notting Notable Member

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    #3
    Not always forumcare.

    For example if you bid on:
    "legal help in nottingham"

    And the ad shown on you website is for the term
    "legal help"

    then you will prob cover you costs and make profit. You just have to find more niche terms whilst you website displys more generic terms.

    Good luck
    Notting
     
    Notting, Apr 12, 2006 IP
  4. axeldrummer

    axeldrummer Peon

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    #4
    Oh, no I'm speaking of just the Adsense program. I'm not even using adwords. But the fact that adsense grows faster than adwords means there is less profit per click for us publishers, right? :(
     
    axeldrummer, Apr 12, 2006 IP
  5. J.P

    J.P Notable Member

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    #5
    You can make more if you run both but mainly depends on what your keywords are, for example if you charge 0.05c / click but the standard in your area is higher then the chances are it's going to give you a profit at the end of the day.

    I've tried it myself, running adwords for a travel site, I had to play around with CPC and my budget was very small, but end of most days I ended up around 2-3$ up over all, with a bit of work I would guess you could come out with a good profit if you are in the right area.
     
    J.P, Apr 12, 2006 IP
  6. babbling

    babbling Peon

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    #6
    Some people say you can, but it seems to me that it wouldn't work, more often than not.
     
    babbling, Apr 12, 2006 IP
  7. jimkarter

    jimkarter Notable Member

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    #7
    I have tried it one some of my sites. I implemented it on CPM basis on some site ( I chose around 100 sites). CTR was good on around 20 of them. So I kept those 20 and removed other 80. Which started giving profit on adsense more than my spending on adwords.

    But it may not work in all the cases.

    About axeldrummer point, yes, there is a possibility of that.
     
    jimkarter, Apr 12, 2006 IP
  8. BrianCarter

    BrianCarter Peon

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    #8
    I've made big money off adsense and am an adwords "qualified individual" consultant, and in most of my adwords campaigns, I avoid using the content network, which is AdSense.

    There are probably ways to make it profitable, but I find it enough work to just do it on Google's search results pages, so I haven't dealt with that much.

    Point being: A lot of the people paying your adsense money via adwords may not know what they're doing...

    For ye as an AdSenser, the amt of money you'll get will depend simply on your traffic, clickthru rate, and competition level of the keywords.

    Brian Carter
    http://adwordsconsultant.blogspot.com
    www.www-makemoneywithadsense.com
     
    BrianCarter, Apr 12, 2006 IP
  9. jdi_knght

    jdi_knght Peon

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    #9
    Yes, basically it comes down to supply and demand. Many Adsense publishers and fewer Adwords merchants means that the merchants can set lower per-click bids, and still use up their daily campaign budget, having more ads shown and clicked in total. Of course, assuming this happens, the merchants should all end up with higher ROIs, and will likely increase their daily budgets. At the same time, more merchants will jump on the Adwords bandwagon, seeing how it does so well for all the other merchants, and at such a low cost. Now there will now be more demand for ad space, and the merchants will start having to bid a little higher again. Higher bids mean that more people will be jumping on the Adsense bandwagon, and the cycle will repeat.

    ...theoretically of course.
     
    jdi_knght, Apr 12, 2006 IP
  10. 3Xguru

    3Xguru Peon

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    #10
    I now see more and more Adwords advertisers using simple MFA websites to convert the traffic from adwords to money from adsense.
    I wish Google would alow us all to use the money earned from adsense to pay for adwords.
     
    3Xguru, Apr 15, 2006 IP