13 Feb 12
16 Oct 12 9:51 pm
#1. People sometimes try to offset their PPC costs by getting paid for showing AdSense ads. I don't think this usually works, because:
* Adsense pays so little
* Adsense requires a whole lot of traffic for any profit
* It's counterproductive to pay for AdWords so as to get people to view your offer, then show them a lot of Adsense ads that simply take them away from your offer. You'd make a lot more with successful sales of your product or service than by selling Adsense ads.
* Adsense ads tart up your pages and make them look cheap
#2. The amount you are asked to pay for clicks on a search phrase in Google AdWords does depend on what other bidders are willing to pay. So, if there are a lot of bidders and if they are willing to pay a high CPC, then your options are to:
* Also pay that high CPC
* Pay less for a lower page 1 position, or even a position on the 2nd or 3rd page
* Switch to a potentially less expensive ad network - perhaps doing banner ads on the image network.
* Pay less, while improving your page position by improving your ad copy, Google page quality score and CTR
Hope this helps...