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  1. #1
    Grandma broke her coccyx! Uncle Rico's Avatar
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    How do they do it?
    I started a small google adword compaign recently with a small amount per day. Because I was using a small amount, my ads disappeared quickly each day. There are quite a few competitors using the same keywords in their campaings. I noticed that 2 of these competitors have their ads running 24x7. For my ads to get on the first page, I had to bid somewhere around $0.52 per click. One of these competitors is always listed in the yellow sponsored section at the top, which I am not even sure how you get in there. At $0.52 per click, I wonder hey they can run their ads 24x7. Their daily campaing budgett must be huge. My hats off to them.

  2. #2
    Merchant & ABW Ambassador
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    What is your product? Are you a merchant or affiliate?

    You can look at PPC in two way.
    1) For a profit generating tool.
    Meaning, your product avg sale is $100. Net profit margin of let's say $30. Technically, you can spend $30 on marketing but you want to do spend less than that as anything less is a net profit. I think that is what you are doing as you have a budget/limit. You do not have the expenses exceeding the profit margin. Note that ad display content on the PPC and site conversion is critical.

    2) To build equity
    If they are looking to drive traffic to their site and harvest a contact so that you are able to remarket to the person in the near future. Even if they make a sale and subsidize to make the first sale, they try to make it back through email marketing, catalogs, etc. They look at it from the average lifetime value of a customer.

    How might they be paying more than $0.52 and still be viable.
    -Their site is converting higher than yours. 0.5% makes a huge difference is you account for volume.
    -Their ad is more targeted. Look at their display ad and landing page. Learn from them.
    -They have a lower cost production. If you are a merchant, cost of the goods is lower. If you are an affiliate, they might be in China or another country. You need to make $1 per sale, they need to make $0.25 because of the USD conversion rate.
    -In some of the positions that I work for, we had PPC campaigns and some of the keywords are basically a loss leader. We see red ink for that category but we are still there as other categories will make up for it.
    -They have a PPC guru that have no idea what are they doing
    -Or they are looking at it from a lifetime value of a customer.

  3. #3
    Grandma broke her coccyx! Uncle Rico's Avatar
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    We are all affiliates with coupon related websites.

  4. #4
    Full Member ske9963's Avatar
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    are they collecting any email addresses? are you?
    Ma, where the beer? :escape:

  5. #5
    Grandma broke her coccyx! Uncle Rico's Avatar
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    Quote Originally Posted by ske9963
    are they collecting any email addresses? are you?
    Yes and yes.

  6. #6
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Good ppc is tightly focused and controlled to only show your ads to exactly the searchers that will respond to it. Since coupon traffic is very specific, it's some of the easiest ppc to do. It's a lot of labor to keep it updated for sure (because of variety and constant change), but the ads, keywords and all that are very easy to target on precise keywords that people are searching for. Aim with a scope, sell the shotgun.

  7. #7
    Grandma broke her coccyx! Uncle Rico's Avatar
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    Quote Originally Posted by Donuts
    Good ppc is tightly focused and controlled to only show your ads to exactly the searchers that will respond to it. Since coupon traffic is very specific, it's some of the easiest ppc to do. It's a lot of labor to keep it updated for sure (because of variety and constant change), but the ads, keywords and all that are very easy to target on precise keywords that people are searching for. Aim with a scope, sell the shotgun.
    Thanks for the tip.

  8. #8
    Affiliate Manager MINDsprinter's Avatar
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    Another thing to keep in mind is Google has some kind of relationship between your daily budget and your CPC. Roughly speaking, if you spend more with adwords, your CPC will go down. Maybe they just are spending more money than you.
    Jason Rosenbaum
    Affiliate Manager
    MINDsprinting

  9. #9
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Quote Originally Posted by MINDsprinter
    Roughly speaking, if you spend more with adwords, your CPC will go down.
    I don't believe this to be true at all. But, the formula's not public, so I'll say this is just my opinion on the matter, not fact. Before you decide which to believe, I suggest you test this (compare notes with someone else, manage multiple varied spend level accounts, get an MCC for your multiple sites and split them, etc).

    Good luck.

  10. #10
    Affiliate Manager MINDsprinter's Avatar
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    I don't believe this to be true at all.
    In my experience, this has been the case sometimes, but not always. Obviously, as Donuts said, there is a lot that goes into the PPC algorithm. Definitely test before you bet the farm.
    Jason Rosenbaum
    Affiliate Manager
    MINDsprinting

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