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Adwords Pay Per Click ArbitrageUsing PPC Programs and Advertising RevenuePresentation of a slightly controversial technique known as Adwords or PPC Arbitrage in which we make money using cheap keywords, good content, and high AdSense adverts.
This article describes a technique for generating money through PPC advertising that is placed on a page, known as Keyword Arbitrage. There are good uses for this practice, and also examples of bad uses. Building quality content like that available on Suite101, and using advertising revenue to support the service is a good use of resources. In fact, without it, the reader would not be reading this article. The trick is to provide content that explains a concept, gives value to the reader, but which allows individual advertisers to target the content to display individual products. The PPC ModelThe above is the essence of the PPC model, made famous by Google's AdWords system. AdWords allows advertisers to buy advertising on the basis of keywords used to describe their products or services. For a discussion of AdWords and AdSense, please see the The AdSense Keyword Research Guide article. Different combinations of keywords attract different values. For example, if many advertisers are looking for the combination of keywords 'AdWords Pay Per Click' then it will be quite expensive to buy a space on a web page. The crux is that advertisers only pay when the link is clicked. This is different to the old pay-per-impression model. This business model has turned around the way people buy and sell advertising. It has also opened up opportunities for savvy content creators. One such opportunity is the PPC Arbitrage model of revenue generation. PPC ArbitrageThe concept behind PPC arbitrage is very simple:
To paraphrase the late Douglas Adams - that should be read through it is completely understood. Only 2 parts of the equation can be directly controlled : the price paid for clicks, and the quality of the content. The price should be lower than anticipated earnings, and the content should be relevant to both sets of keywords, and of high quality. If it is not relevant, the visitor will not stay. If the price is too high, then money will be lost on the arbitrage. Content is ImportantWithout content, the system falls down. Good content does 2 vital things:
Since the content creator is paying for exposure, they will want to be sure that a click being paid for has a chance of making some money. If the content is poor, the visitor will not be around long enough to see the adverts, let alone click on them. The placement of those adverts is the last part of the model. AdSense PlacementThe content provider does not get paid unless an advert is clicked upon. This makes it vital that the AdSense or other PPC advertising is positioned properly in the page. It must be above the fold, and integrated with the page content. In addition, advertising can be placed close to other logical buttons, such as links to other parts of the site, or a search bar at the top of the page. Correct placement makes it more likely that the visitor will see an advert, but only they know if they will actually click it, so there is still a large element of chance in the model. More Information
The copyright of the article Adwords Pay Per Click Arbitrage in E-Commerce is owned by Guy Lecky-Thompson. Permission to republish Adwords Pay Per Click Arbitrage in print or online must be granted by the author in writing.
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