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Is PPC Too Expensive?

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It’s an interesting question. After a previous of mine that highlighted the highest paying keywords, PPC has grown in competition to produce keywords in excess of $55! How can anyone pay that much for one click that, for all we know, may be an accident? Just like with fuel prices at the moment that are constantly getting more and more expensive, I saw that PPC looks to be going in the same direction. Keywords five years ago were never as expensive as they are now. Is it because the boom in technology has led to an increase number of advertisers online? Nobody will ever be able to put their finger on the problem to inflation in the PPC market. It might be simple with the reason being it’s an online auction. Just like with eBay, many items (or keywords) are over paid for. 
The thought of PPC being expensive came to me after look at my website’s monetization, Ask Will Online. After looking at my publisher side and Google Adsense, I saw something quite, well, shocking.
 

From around 120,000 views, I gained a CTR of 0.7% producing 822 clicks with an estimated earnings of £300. Now, this means the CPC is around 35p ($0.50) which is very average in PPC. The point I want to make is the two first numbers. What do they mean?

  • I gained 120,000 views to my website.
  • My advertisers only gained, in total for all the advertisers, 822 views.
It seems obvious that blogging can sometimes be cheaper than PPC to advertise. After all, the traffic to them 120,000 views of pages are the type of traffic my advertisers are wanting traffic from. If you consider a CPC of $0.50 for 120,000 views, that’s $60,000 worth of traffic!
Then, why don’t you miss out the middle man?
It’s an interesting thought. Instead of pay-per-clicking, why don’t you gain around 119,000 more views than you normally would do and just advertise through blogging? This amazing idea has it’s drawbacks with the main being time. It took me around 2 years to get the traffic to Ask Will Online its getting. PPC is instant. You can turn it on and off faster than a light switch.
For this reason, I can understand why some advertisers will pay up to $55 for one click. As well as paying for high quality traffic, they are also paying the publisher, such as myself, for all the hard work they done in obtaining the valuable traffic and luring them to their site to then click on an advert. It makes sense.

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