If The only income you are generating is from adsense? Say for instance your clicks average 40 cents and it only will cost 5 cents to lure visitors to your site. Do you think that makes sense or is just a waste of $.
Have a quality content, visitors will come. Unless you are driving traffic for some sale's or product, I think it is waste of $
the thing is though the content is good and i think the people who find the site might pass it along. also i think its good to get your site on the front page of google with easy search terms just to reach into consciouses. but i also don't want to waste my money too.... its a double edged sword...
If you are interested in getting people talking about your site their are other more effective marketing ways than PPC (like viral marketing). But it doesn't hurt to try so I suggest you get an AdWords Coupon (I think you can get them at DP's marketplace at around $5) and you can use the 'free' $50 to test with different campaigns and see if it works.
Atm, I just tend to use the Gr8 deals and FREE money these companies offer than going into a whole marketing campaign. Eg Yahoo/Adsenses $50 when deposit $5. (only available via some special links I've seen and posted around here)
It may be worth trying with a limited budget but I would only suggest doing this if your AdSense ad's have a high CTR.
I was looking at this earlier today and its hard to come out on top. Say you get $0.40 per click and have a ctr of around 8% you pay $0.05 per click with adwords and per 100 clicks generated from adwords 8 will click your adsense ads. You've made $3.2 but spent $5 So unless you have a very high ctr its not worth it (even then it works out pretty lame) Example: CTR of 33% at average of $0.40 out of 10,000 traffic from adwords you get 3,300 clicks making you $1,320 but costing you $500 ($820 profit). Seems good until you realise you won't get that kind of traffic paying $0.05 per click and I think the average CTR is about 5%. Anyway enough of my mumbling maths lol
i am currently running adwords/adsense on infomedia411.com 2 keywords, max CPC $0.40 adsense profit is about 20-25% of what i spend on adwords
I'm going to echo what most other successful marketers have been saying. The trick is to keep testing. Keep testing for the best keyword phrases, the best cost per click limit, the best Adword copy, the best version of your sales copy, etc. Regard Adsense not as your sole online income source but as a stepping stone to more expensive but better advertising & marketing strategies that will yield even more results for you.
Arbitrage is a business model that can work very well for those who really master it. However, you need to work very hard to get the job done. Arbitrage is just not an easy-money-game. I don't think they exist at all.