The AdWords content network is the same way, ignore it and you'll be missing out, join it and you'll lose money.
Yes, the content network is a lose-lose for most people. The main reason is that they bid the same amount on the content network as they do the search network.
Here is a 100% verified (through my studies) fact (not exactly scientific). Content clicks don't convert as well as search clicks.
If you don't understand that, prepare to lose money. The reason is simple.
You have a 10% conversion ratio. Your pay an average of $1 CPC. For every $100 your spend, you'll have 10 sales. If each sale gets you $20, you'll have a 200% ROI.
If you bid the same on the content network, you'll probably have somewhere around 2-5% conversion ratio. At a 2% conversion ratio, you'll make $40 for every $100 you spend. At 5% you'll break even. Either way, not good.
Trust me, I've been there. In order to make money on the content network I usually try to spend about 25-50% of my search CPC. So if I am bidding $1 per click in search I will start my max bid at $.25 per click. If I'm not getting enough clicks I'll try bidding up to $.50 per click and try to turn a profit.
The content network is always tricky, but think of it like you did when you first got into PPC. Have fun, bid low and make some money from that weird uncle!
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