Using Adwords for $5 Product

Hi luke113,

Yes, it may be profitable to advertise a $5 product successfully on AdWords. There are a few caveats to consider, keyword competition is chief among them. For example, your options are limited if you are targeting keywords that are typically bringing your competitors 10 times the profit your offer delivers.

I have clients that sell large volumes of products at CPA averages below $5, and lead generation campaigns with CPA averages under $5 as well. So it is possible with a well managed campaign.

Don't judge the success, or failure, of your campaign before you have had a chance to split test ad text, and spent a few weeks gathering data to optimize keyword targeting, bids, bid adjustments, Quality Scores and other campaign optimization tactics. Your Quality Scores are a major factor in determining costs and it always takes a few weeks or more to gather the data for improving Quality Scores.

The nice thing about AdWords is that you control your costs, so it is usually possible to create a profitable campaign, however the size of the market and the level of competition are limiting factors for the volume of business. Nonetheless, here are a few suggestions:

• Create branding and awareness campaigns - Build your games brand, then target branded search terms for your direct response campaigns, the cost will be lower and the conversion rates higher.
• Create bundled offerings - By bundling your game with other digital products you can sell the bundle at a higher price and compete with competitors that have higher profits.
• Consider Customer's Lifetime Value - Realize that you may not be just selling a single product to your customers over time. Once you have built a cutomer list you can often sell many more products to that list at a fraction of the initial cost to acquire the customer. If your new customer has an average lifetime value of $17, for example, then a $5 or $6 CPA may be well worth it to build your business and your brand.

HTH

Hello, thanks you. Its not that easy to port the game to mobile, since it requires a whole different control setup.


As for the forums, I cringe at the idea at getting involved with a forum for the sake of promoting a product. I know just spamming a forum is not a good idea, but I think it's more awkward to get involved in a forum and be like one of the regulars, when in reality your just there to promote something.