Sunday, March 21, 2010

Adwords Adsense Arbitrage

I have read elsewhere in the internet that it is possible to profit from having an adwords campaign working side by side with your adsense ads.

It simply works by paying less for your adwords such that you drive sufficient traffic to your site to increase your adsense earnings dramatically.

How reliable is this method? I did my own calculations here:

Money spent on Adwords

E.g. per click =$0.01
100 clicks = $1.00

So you spent $1.00 to drive 100 visitors to your site.

Money earned from Adsense

Assuming the common click-through rate of 1.5%, out of 100 visitors, you can expect 1.5 clicks. Now, you will have to be hoping that each click on an ad unit at your site will earn around $1 just for you to break even. That is highly unlikely as most of the times, ads only pay like $0.10 to $0.50 per click. Out of the clicks you get, not all will be on the high paying ads too.

Adword Adsense Arbitrage - Myth Debunked

I hope I have debunked the adword and adsense abritrage myth for you.

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