For the past 4 months, Google Adwords has been my bread and butter for bringing in cheap traffic to my main site. I've watched my site traffic grow from 5K a month, to 20k a month, and last month I hit a record 40K unique visitors. As of recently, advertising costs have steadily declined from $.15 a click to a low of $.05 a click. I've seen a lot of blog comments and posts on webmaster forums talking about Adsense revenue shrinking, and while it is dissapointing to see...I'm seeing more potential now than ever to bring in cheap traffic. My profit per visitor to my webpage has taken a pretty hard hit, but I'm able to compensate by bringing in more traffic, earning 5% more than last month with almost the same costs in advertising. I think over the next year, if the economy doesn't recover...those with adwords campaigns (who can profit from PPC) may come out the winner over webmasters who only rely on search traffic and adsense. What's everyone else think?
I think you may be sorta right. Although, the market will balance itself. I've seen a certain amount of truth to what you are saying in my accounts. What general niche category are you in?