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Wondeirng how adwords can be profitable

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi. I'm trying to sell homemade Cmoy headphone amplifiers on ebay and I'm using adwords to generate more views on my ebay auction. I'm aiming at a very spesific marked so I've used search words like "buy cmoy", "cheap headphone amplifier" etc. What I don't understand is how adwords can actually be profitable. I need a minimum CPC of about $1.40 to make my ad show when searching "buy Cmoy", I can't imagine how high the CPC must be to make my ad show for searches like "headphone amplifier". There is just no way this can be profitable for me if I have to pay $1.40 for each click Smiley Sad Another thing that puzzles me is that no ads will show when searching for "buy cmoy" unless I raise my CPC to above $1.40 to make my own ad show. Why won't adwords show my ad for less than $1.40 if there are no other ads to show?

2 Expert replyverified_user

Re: Wondeirng how adwords can be profitable

Top Contributor
# 2
Top Contributor
Hi Tor-Arne F,

AdWords doesn't work for everybody. I don't think I'd use AdWords to advertise an eBay auction item. If it's a fixed price and you have more than one, it could work. But you have competition to show your ad. Not only do you need to bid high enough to get a placement on the page, only one ad for eBay can show on a SERP.

I had to look up Cmoy to find out what it is. There are product ads on the SERP. Then I looked for "headphone amplifier" and got a whole page of ads. This could mean the clicks will cost you less, not more. Think in terms of what your potential customer is looking for and how they do that.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords

Re: Wondeirng how adwords can be profitable

Explorer ✭ ✭ ☆
# 3
Explorer ✭ ✭ ☆
Let's look at this from the other way around. Why would someone want a Cmoy headset? What would impel them to buy?

Another thought is that Google charges you 1 cent to be above the competitor beneath you. Now if your click through rate is 3x greater than your next lower competitor, you'll pay around 1ct more than your competitor for ALL your clicks. Whilst this is a rough indication only, it does show that getting a good CTR means getting cheap clicks.

So think of the results of having such a headset. "Fantastic sounds for you whilst it's quiet all around" - or something of the kind. Bear in mind only your searchers can tell you which angle works, but tell you they will for one of your ads will have a CTR better than all the others put together.

Doing this can drive the price of your clicks down to manageable levels, whilst soaking up most of the traffic from that search page.

Re: Wondeirng how adwords can be profitable

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

I figured it out, my daily budget was blown despite my campaign showing 0 views and 0 clicks, that's why going below $1.40 shut the whole thing down. There is still a lot I don't quite understand, I find adwords complex, but I'm learning little by little.

 

This is actually a Cmoy headphone amplifier so it's even more spesific. Am I right to choose search phrases that are so spesific that my ad will appear despite a low CPC? I could put my imagination into swing and come up with a bunch of really spesific phrases to ensure a very low competition, low CPC and higher value per click. One question I have though. After lowering the CPC of the phrase "buy cmoy", the ad no longer shows, it gives me something like this message "the ad leads to an identical destination that a competing ad with a higher rank" (translated from my native language). I understand that I've been outbid and that some other ad is shown in stead? Thing is that there are no other ads showing when searching for "buy cmoy" so why won't google take my money and show my ad?  

Re: Wondeirng how adwords can be profitable

Top Contributor Alumni
# 5
Top Contributor Alumni

Something like this message "the ad leads to an identical destination that a competing ad with a higher rank" 

 

This means another ad in your account, not a competitor's ad.

 

It's a mistake to assume that using very specific keywords will produce lower click costs. Although the search traffic on these keywords is probably less, the competition for them could be very strong. (Most smart advertisers use very specific keywords.)

 

I would caution you not to assume that, just because you have not yet seen any competing ads that there are none. There are a large number of factors that go into which (if any) ads are triggered for every search someone does on Google--the fact that you don't see an ad doesn't mean that one or many ads aren't being shown. (I do hope that you're using the Ad Preview Tool to check for your ads on the SERPs, and not searching 'live' on Google?)

 

I would actually agree with Petebardo. I don't feel that AdWords is the ideal advertising venue for the scenario you describe. You have only one product and it sounds as though your profit margin is very slim. A pay-per-click campaign may not be a profitable way for you to advertise.


Theresa
Google AdWords Top Contributor
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Re: Wondeirng how adwords can be profitable

Visitor ✭ ✭ ✭
# 6
Visitor ✭ ✭ ✭
This might not be profitable for me, you might be right Smiley Sad I just don't know how else to advertise my product in a way that's still profitable. So far I'm getting very few responses on ebay.

Re: Wondeirng how adwords can be profitable

Top Contributor Alumni
# 7
Top Contributor Alumni

I'm sorry, I wish I could help.

 

 

If you're trying to sell  homemade product in a field full of profesionally produced competitors, you have an uphill battle in front of you. People want guarantees, reviews, reputation, and support when they purchase electronics. 

 

As an individual, you probably don't have the funding or the time for a series of tests to investigate the different sales venues (places aside from eBay where you can list your product) and I suspect you were hoping to find a magic button Smiley Happy setting in AdWords that would allow you to profitably advertise & sell during this holiday buying cycle. You could always try Display advertising instead of search--if you stick with text ads instead of image ads you can buy clicks very inexpensively. I have no idea what results you might get and obviously a display campaign can take quite a long time to optimize but it might be worth trying?

 

 


Theresa
Google AdWords Top Contributor
*~*~*~*~*~*~*~*

Re: Wondeirng how adwords can be profitable

Explorer ✭ ✭ ☆
# 8
Explorer ✭ ✭ ☆
Have you sold any of this equipment? What have your friends said about it, and those who've purchased?

Is there anything that you can point to that makes your amplifier special? After all, if you're making the thing yourself, you've a huge advantage in that you can adjust it to fill a market niche. That way you can also charge more ;-)

As Theresa mentions, the issue of credibility is important - but not impossible to crack. My direction is to find what makes yours special, and that means that there isn't a choice: either they buy yours or they goes without that element they so desire. All you need do then is hit that advantage/benefit loudly and see who puts up their hands (= clicks your ad).

Re: Wondeirng how adwords can be profitable

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭
I haven't kept track of how many I've sold, but I would guess it's its close to a hundred (in my home country). The responses has been positive Smiley Happy A headphone amplifier is something most people don't even know exist or that they might need one. When I first started making them I had no competition at all (in my home country that is), no one was selling headphone amplifiers this cheaply. I see now that a competitor called Fiio is selling about the same amplifier as I am making, the price being a tad higher.

I was thinking of filling a marked niche when I first started, but ebay has every single item you can think of, there's always going to be competition Smiley Happy You're right that I'm often competing against professional companies, but the world of audio and HIFI is so incredible overpriced and packed with myths and cons. I can make a product with excelled sound quality at half the price of what others are selling them for, there are amplifiers out there that cost $50000 that are no better than an $1000 amplifier, the difference being the name of the producer and design (perhaps). This doesn't quite extend to headphone amplifiers found on ebay though as I see a horde of Chinese companies that are selling excelled headphone amps for ridiculously low prices. It's doesn't really help that my home country is Norway. Our shipping costs and cost of living in general are very high Smiley Sad Even if I were to make a niche product, I'm still back to square one as I still need people to know that I'm selling it. As I said, many of those who buy my amplifiers don't even know that they exist, they come by them by chance and think "that could be worth testing out".

I'm just doing this as a hobby, something to do along side studying. I'm not really doing it for the money although I do want to make a profit. The majority of those buying these amplifiers have little knowledge of them and with the price being only 40-50usd, they might not make much of an effort checking out the competition either. I guess my listings will rank higher on ebay as the number of views and my feedback score increases.

Re: Wondeirng how adwords can be profitable

Explorer ✭ ✭ ☆
# 10
Explorer ✭ ✭ ☆
I think the first thing to say is that you're selling a quality product with a quality service and backup - your prices should reflect that. As I mentioned, you have a lot more control over your product and marketing than many; there will be something that makes yours stand out.

The other issue is to find those who DO know something about what they're buying (add something about ?? B class amplifiers or ?? high pass filters or somesuch - you'll tell just how old my own understanding of electronics is ;-) ). That way you can filter out those who really do know something about what you're selling. Sure your clicks may go down, at least you'll get more buyers. Well, that's my guess. You need the kind of people who really want a decent concert-hall-in-their-bedroom.

My guess is that you could try a very small campaign using classical music as a keyword - you'll need to do some research, a little reading online about their likes and dislikes when it comes to electronic equipment. A small campaign just to test the water, as it were. Once you've got something running, then scale up - just make sure it's paying.

And don't forget that you get rubbish customer service from China. The classical music buffs demand quality - and service. You can easily supply both.

Another idea is to have a chat box on your landing page so that you can have a little talk with them to see what they really need. I think the fact that you're responsible and willing to engage with them will not only get you serious buyers, but do your self-confidence a boost too!