PPC Arbitrage Test - part 2
November 21st, 2006 by Remon
This is just a small update for the PPC arbitrage test. I just did a wire transfer of $100 to play around with. I already added many keywords for my test, from ~700.000 to ~20.000 searches per month and my bid per click ranges from $0.01 to $0.06 with $0.03 being the average bid.
With my $100 test budget I should be able to generate around 3000 clicks. If I can get a 20% CTR at $0.20 a click I make a profit of $20 (theoretically). I think I can get a CTR in the 40-50% range but never tried it this way before so we’ll see. At 40% CTR and $0.20 a click I should make a profit of $140.
I’ve also set up some pages, pretty basic stuff. I’m gonna test 2 different layouts, the first is with the text on the right and ads on the left. The second layout is the ads on top, and the text below. Once I know which layout is the better performer, I’ll start tweaking the pages. The visitor is only given 2 options basically, click the ad or leave the site by closing the browser or pressing the back button. There are no internal or external links on the pages.
I may be testing an affiliate program as well, just to see if I can get a higher eCPM then I can get with adsense. I won’t be doing this with the $100 start budget though. The start budget is just to test my 2 niches with adsense and the 2 different layouts.
It will be interesting to see how the layouts perform, and how many clicks I can get (if any) from the low traffic searches combined. To be continued…
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