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What's going on with this Adwords situation?

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Ok if theres any company out there that I would never accuse of being a scam, its Google. They have consistently paid me for adsense and well, they are Google. I dont think they are doing anything, its probably a publisher or maybe me. Im just asking because Im curious if anyone has noticed this or has an explanation for this, its a weird situation, and it may be a publisher cheating the system or maybe Im just missing something:

I have a few sites which I advertise in Asia that are social sites. I started using Adwords for these sites about a month ago. I only use search, not content. Not everybody who clicks on the ads becomes members, but I noticed that for every 2 clicks, on average, I would get a member....one of those clicks would convert into someone who signs up for my free website. My bid was .32 cents a click, so it was costing me around 60 cents for each member (At the end of the day I just look at how much I spent and divide that by how many members I received, to see how much each member cost me). I started lowering my bids to see if I could get the clicks for cheaper, so I lowered them much lower to .15 cents a click, and that worked. I've been getting .07 cent clicks, but now, instead of it being every 2 clicks gets me a member, its like every 9 or 10 clicks I get a member. So its still costing me the same even though my bids and clicks are much lower. What is going on here? Are the cheaper clicks somehow resulting in less quality traffic? Or is it something Adwords is doing? Is a publisher cheating the system? Any ideas are appreciated.
 
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Are the cheaper clicks somehow resulting in less quality traffic?

Spot on. Cheaper clicks = lower quality of traffic, especially in search. You might want to experiment with google's pay per conversion program on your sites.

-Ryan
 
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