I'm running a CPC Adwords campaign with a max CPC of $0.50 to advertise my free dating site (i'm trying to make a profit from advertising). Is this a good amount? Is it too high? Too low? I am publishing a medium rectangle image ad as well as a text ad... Paul
depends on version rate divided by income amount per conversion. example, a 1% conversion rate is average so if you pay .50 click then .50 x 100 = 50.00 then how much do you make per sale. if you made 50.00 you would have broke even. now you must optimize, get a better conversion rate or provide better content to get a lower cpc or there are many, many things you can do. too many to list here but the main stay is a 1% conversion rate generally speaking
By 'make a profit from advertising' you mean by arbitrage? If you do, then it's just a pointless exercise. You won't make money and google will keep putting the cpc up.
In short, if 50 cents brings you what you expect, then it's fine. But if your advertising costs you more than the profit you make it's not. There is a long list to check before saying yes or no.
Right now my advertising costs are $300 CDN/month (Adwords), and I'm not making any profit yet.... as my dating site is still fairly new and I'm still at the stage of trying to build up my member-base.... My planned income sources are 1) AdSense, and 2) Paid profile upgrades..... however right now increasing my member-base is my primary concern...