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Originally Posted by DMC_34
Maybe not for you but that is truly rare in my experience and others I know in our type of business. We spend close 50k a day in Overture, Adwords, MSN Featured Ads in November. Of which 25-30k a day goes to Google Adwords. When we run content search we spend an extra 5-10k with very little noticable difference in sales. We run WebTrends Enterprise analysis. Content search was a total waste for us. But maybe power tools = individuals where business greetings = corporate audience. Maybe that is the difference.
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Actually, our PPC ads are for repair parts for those tools, not the tools themselves. Tools are such low margin that the only reason we sell them online is to get our volumes up so we can carry the parts at competitive prices. We'd need almost a 70% conversion rate to make PPC pay on most of the tools.
Click fraud varies depending on industry. Generalizing it as all click fraud doesn't do much good. If you don't test it out in each particular industry, you won't know what it is capable of doing. Maybe it is a bust... but maybe it's a goldmine in that industry. Obviously, there are going to be a lot of busts out there. But it's worth trying at least for a bit. Just make sure everythign is tracked closely.
Brian.