Google’s Anti Arbitrage (A Theory)

Ok…
This is a theory but seem to make sense…

Next month I’m going to reverse the logical and see but first let me explain the theory…

I set up a site for my girl friend of which she loves…
The site has been growing which is great…
It’s a bit of a fun site and only has adsense and Amazon as its sources of revenue..
Now the hopefully may take off in the future but its all fun..

So to the point of the theory..
The traffic to the site has been increasing by the day and it’s full of fresh content which is added on an almost daily basis.. To kick start the visitors I added a small budget to PPC’s on yahoo msn and of course google adwords…

Now if you don’t know over in the uk its tax time for many of us which means by the 31st July you need to pay 1/3 of a years worth of tax so me trying to save a little cut my girlfriends adwords budget by 1/3….

So I’m getting 1/3 of the adwords referrals compared with last month thus a little less traffic.. The funny thing is that the adsense CTR and impression are pretty similar BUT the cost per click has increased 3 times.. Yep 3 times..

So would this be a defensive technique to stop Arbitrage?
Smart pricing if PPC referral?
This would make a lot of sense..

Anyway next month as I said I’ll reverse the logic and I am getting those warning from my adwords account TELLING to increase the budget to get and extra traffic per month…

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