Getting raped in arbitrage

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cadmium

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Dec 18, 2006
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Reading posts for the past week inspired me to try my hand at PPC arbitrage. You guys seem like you know how to arbi, especially chrislingle and setec. I only have 3 pages so far. I've been getting decent CTR, but my adsense isn't getting more than $.15 CPC.

I thought the digital camera niche would pay out, but I'm getting $.12 CPC for this page. I'm even targeting the keyphrase 'sony digital camera' which costs $4.65-$3.85 according to adWords. I was expecting at least $.50 CPC for adSense.

Does this have to do with smart pricing? I've heard the term, but am not too familiar with it. I'm using 7search.com for my traffic.
 


It's all about the ad targeting. MAKE SURE that the ads on your site are displaying the correct ads or else no one will click. Plus, I tend to stay away from products where the company is in a lot of different markets. Like sony.... they make tv's, gaming consoles, etc... your ads might be showing ps3 ads simply because the word "Sony" is in your page. Plus, don't go by the bid tool from google. Use the overture bid tool.

View Bids

another factor you might want to take note is your layout. what does it looks like? How did you structure it?
 
also when doing some KW research in the Google KW tool - type in .50 cents as your bid price. If you see a large % of words where if you bid .50 cents you would be in the 4-6 ad position, you know that that KW is probably going to pay out at least .50 cents (assuming you have one adblock on your page).

Now take about 1/3 of that and that is a rough estimate of the minimum you should make from google.

If you see most of the KWs at .50 cents would put you in the #1 ad position, that KW won't pay out all that well.

btw- remember that having more than one adblock on your page might increase your CTR, but will probably decrease your ROI.
 
Good point from reefer, I always set the bid to $.50 or $1 depending on what I am doing and look at the positioning.. if they are all around 4 - 6 or 7 - 13 you have a better shot then if there are some high #'s.. but when you drop it to $1 you are still at position 1-3
 
Mason, thanks for the bid tool and the tips. Here's my layout:
http://gametell.com/layout.jpg

Reefer, I never thought of that. Why would more than one adblock decrease ROI? I'm using three for my template. Would cutting back to one or two increase CPC for adsense?
 
BTW I tried out your page generator lerchmo and it's pretty sweet. I'm just manually creating until I get the hang of it.
 
You've got 3 adblocks. What reefer is saying is only have one adblock. By putting more adblocks up, you may get better CTR (or you may not), but it also pulls in more advertisers, thus the possibility of pulling in more advertisers that don't pay.

With one adblock you should get the top paying advertisers more often.
 
Mason, thanks for the bid tool and the tips. Here's my layout:
http://gametell.com/layout.jpg

Reefer, I never thought of that. Why would more than one adblock decrease ROI? I'm using three for my template. Would cutting back to one or two increase CPC for adsense?

yea. the more ads you have on the page the higher the chance that the visitor will click on a lower paying ad. Plus, I noticed that you have link units... stay with the block ads cause they usually pay better. Also, try to blend your ads with the layout more. Most people won't click on ads, but they will click on links that look like it's apart of your site.
 
Also, you're layout is pure shit... put ads above the content, not next to it. In fact, why even have content hahahahahaha.
 
especially chrislingle and setec
Hahaha. I'm pretty sure I'm making < 5% of what he's making on arbi... still, it's more than enough to pay the rent. There are lots of people here making way way more than me. Those people seem to have two things in common: a very high degree of automation, and multiple source of PPC traffic. I've just taken a couple steps in that direction so far. Anyway, here are my $0.02:

On your layout: It's too easy to tell your ads apart from your content at first glance. They're spaced about 50 pixels apart and in completely different visual blocks, and the content block is more eye-catching because it's obviously the meat of the page. You want the ads to either look like they are your primary content, or blend in with your content more seamlessly. Try having your text wrapped around an ad to the left of it, with no padding around the ad unit, so when the eye reaches the end of a line of text it naturally continue onto the ad. You should try to match the font and line-spacing of the ads with your text, too. Also, I like to throw some bold words into my text, so that they have the exact same font as the ad titles. I haven't done testing to see if that really helps but it does feel a little better.

Some niche selection tips, all very general and open to lots of exceptions:
  • Look for topics people mostly only search for if they're planning to spend some money. Lots of people searching for digital cameras are just browsing to see what's new or to compare, and the odds are even if they're shopping they're just looking for information on which model to buy and already know where they're going to buy it. On the other hand, if somebody's searching for toaster ovens, they're probably looking for a toaster oven to buy. Nobody's into browsing the latest and greatest toaster ovens for fun. (By the way, toaster ovens pays like shit -- it's an example from my list of scrapped niches, but it's the sort of inconspicuous product that often does well for me.)
  • Try lots of niches at first, not just 2 or 3. My first instinct when I started was to build just a few and tweak them until I had optimal CTR and everything, then build more. That was wrong. Even well-researched niches are so hit-or-miss that you should really have at least 10 or 20 before you start spending much time tweaking other aspects.
  • Stay away from niches with too much of a local component, because the CTR is horrible. One niche like this that I gave up on was flowers. At least on YPN, nobody was advertising national flower delivery services. All the ads are "Flower Delivery Houston" or something like that. Unless the visitor happens to be in Houston, why would they click? (Disclaimer: AdSense sometimes does a good job geotargeting by IP, so local stuff might be fine. My bad experiences with this are from YPN which shows untargeted local ads to everyone, and I've heard AdSense does that sometimes too.)
  • Stay away from broad niches when the visitor is looking for something specific. Example I gave up on: Diabetes Supply. The ads paid well but the CTR was horrible because all the ads were for individual types of supply and the visitors were looking for some individual supply -- usually not the one advertised.
Hope this helps a bit.
 
Get a feed thats gives you a contractual revshare, try infospace or miva, or YSM although they prob won't give you a feed, buy cheap searchfeed type clicks and you should do much better just watch your wastage because the tier3-4 engines serve a lot of toilet clicks.

Don't let Google decide how much you are getting paid, not the way to play.
 
Here's a layout I made trying to make the ads look like navigation:
http://gametell.com/layout2.JPG

Here's one where I followed lerchmo's and engaged's suggestions on ad placement:
http://gametell.com/layout3.JPG

*I know layout3's ads arent' targeted (localhost). Also, I'll take away the margins on the ad and nest it better (following setec's advice).

Nice info on niche selection satec. No wonder I thought you were one of the highest earners.
 
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