Thanks for the feedback everyone, both positive and negative. Here's an update of sorts.
I think people may be overly concerned about ROI and profit on this test. This post is about how to set up an arbi campaign for people totally new to the process. That's all. Some campaigns will be profitable, some will not but the PROCESS of running a campaign is the same. Some steps like article generation can be automated but you still need to get some relevant text on the page.
The hardcore arbi guys like Chris Lingle test 100's of campaigns, toss out the unprofitable ones and settle on the 150 or so that are profitable. This campaign's ROI and profit is still to be determined. It may make money, it may not. I only posted some numbers to let people know how things are going on the first few days.
I don't know how much more clearly I can explain it to people who say this is invalid because the ROI data is not there or the profit is measly.
Just to avoid this whole numbers issue. I think I'll wait a month and post some figures then.
In any case I am expanding on the campaign by trying other search engines and breaking out some of the sub niches in the main topic into separate campaigns.
PSU4Life
Great post but isn't driving adwords traffic to Adsense Arb pages asking to get banned by Adsense? I have stayed from using adwords to drive arb traffic because of that reason. Has anyone been banned for that? Do a lot of people use Adwords for Arb now a days?
Pocketrockets is right.
Google recognizes Adwords to Adsense arbi as a valid business model. The ebook author got an ok and Shoemoney has an interview with Google rep Brian Axe on webmasterradio.fm regarding that topic. They are more concerned about user experience and intent. Go to minute 39:20 on the broadcast.
Free Internet Radio, just load Webmaster Radio 24/7
infohigh
I've got a question though. On Keyword Country, there are two statsitics "CPC" and "AvgCPC." What's the difference? Is CPC the "Estimated Average CPC" from the adwords Keyword Tool? Where does the AvgCPC come from? Is it available from places besides Keyword Country?
CPC is the maximum bid set by advertisers. You almost never get this amount.
The avgCPC is the average of what ALL the advertisers are bidding for the keyword. You should take the avgCPC with a grain of salt, it's just gives you a more realistic idea of what payout COULD be. Testing a campaign will give you better real world data. I believe KeywordCountry grabs their data from Google's Adwords. Other keyword tools like Keyword Analyzer and Keyword Elite may also have the avgCPC figure but I'm not 100% certain.
Re:click fraud
I had bought Adspytracker and installed it several weeks ago but their support is just a FAQ and I found that some other people's sites were being tracked on my install! That freaked me out so I no longer use it.
I was planning on buying asRep and even played around with their test site but never got around to it before this ad fraud drama. I'm going to install the demo and probably upgrade to the full version once it's properly configured.
I will clean up some of my wording on my original post when I get a chance. It was posted in a rush and shows it.