Is Advertising Through Google Adwords Profitable?
Google Adsense is the most popular Pay per click advertiser on the net today. Adwords is a commonly used for advertising because of the name recognition, but is it the best way to advertise your website or affiliate link?
For most websites, the answer is no. When you place bids on the keywords you want, you are going to pay a lot of money per click. Around 15-50 cents a click is pretty average range for what a advertiser pays on Google Adwords.
Let’s say for example, you are advertising an affiliate link with Google Adwords. The affiliate program pays you 10% and your average sale is 50 dollars over it’s life. That will get you on average 5 dollars per sale. In order to just cover what you paid on Adwords on average, you would wind up needing a 10% conversion from clicks to sales if you are paying 50 cents a keyword bid. Any affiliate marketer can tell you that kind of conversion is unrealistic, unless you really know what you are doing and even then it isn’t a guarantee.
Some might then go for a less popular keyword that is cheaper. The problem with that is demographic targeting. The user is even less likely to convert to a sale if the keyword doesn’t match the product well. So you probably won’t make up much ground, if you choose a cheaper off-beat keyword either.
The worst sites to advertise on Google adwords are non-commercial sites like article sites, blogs, and forums. Why would you spend money on expensive clicks only to have someone check out your forum or blog? There is no money to be made unless they click on one of your ads too. Google adwords for these kind of sites is throwing good money down the drain. Thats why there are MFA (made for adsense ad sites) becuase they are just landing pages of ads, hoping people will click on an ad after clicking on their adword ad, that pays better than what they paid for the ad in adwords.
The only time Google Adwords is almost always profitable, is if you have an actual store or E-book site you are advertising directly, that you yourself own. You will then get 100% of the profit and get a good return on your Adword investment.
Alternatives to Google Adwords:
There is many alternatives to Google Adwords.
1) Free. There is many things you can do to improve traffic to your website for free. If you are advertising a commercial site like your online store, this isn’t a realistic option though. If your a real business you should set aside some money for an advertising budget because what you pay in advertising should lead to more sales and brand recognition of your business/site.
2) Less popular PPC networks. Many PPC networks pay very little because of lack of advertiser competition. This is an advantage to advertisers, since you should be charged much less than Adwords for the same keywords. However, you get what you pay for, as the targeting and the anti-click fraud measures is usually much poorer than Google Adwords.
3) Start your own affiliate program. Give your affiliates 10-15% of your earnings and let them do all the work promoting your product. Usually publishers get 60-70% cut on keyword bids on many PPC networks. A 15% cut on a sale is a bargain in comparison, considering you won’t do any work promoting. Plus, usually its a good SEO technique because you get other webmasters to give you a backlink when they promote your site.
4) Buy direct advertising. You can sponsor a review of your website on a blog through the many “pay per post” advertising services, such as SponsoredReviews. You can buy a text link on other websites through the text link ads network like TNX or in a high PR directory, to help your search engine rankings.

July 10th, 2008
Adwords can be very profitable if you know exactly what you are doing.I know many people who have blown their budget within a few hours.
July 10th, 2008
Great post. I know that a lot of people have lost insane amounts of money trying and failing to effectively use Google AdWords service. They set it up so you really can’t get much production without committing a large amount of money to your campaign, which I think is rather unfair for small time advertisers. Great tips on other ways to get the word out
July 10th, 2008
I gave up on Adwords since I didn’t want to pay money while I experimented with what ads worked best.
July 10th, 2008
I usually stick to the less popular and free advertising like you mentioned. I had some good experiences with adengage. Never really considered starting an affiliate program because I am not the most creative person arround.
July 12th, 2008
Thanks for a post very useful
July 13th, 2008
Use minimal spending for Adwords to experience it. You can set the spending limit for advertising. Don’t depend on Adwords, it’s expensive. Use other method to get traffic, such social bookmarking and comments on others blogs. Make friend in forum. Be active in blogosphere. Want free traffic? You got to work more.
July 18th, 2008
If you know how to do it right google adwords can be very profitable
July 18th, 2008
I Agree, as long as it is the right site. I personally don’t want to learn how to do it though, seems risky like gambling.
October 7th, 2008
I usually stick to the less popular and free advertising like you mentioned. I had some good experiences with engage.