Originally Posted by 49thParallel

This does make the game a lot tougher to play, but there will be some big winners as well.

The problem is developing an ad that people will still click on, without being able link directly to the product you are selling, due to the one ad per domain rule. A good example would be Bel Radar Detectors, a product I used to flog back in the initial days of adwords. During my ad rotation experiments, I had the one ad that said "Bel Radar Detectors" in the heading and then their URL as my destination URL. This one got around a 6% Click thru ratio. Then, I tried another ad that went to my review site. The heading was "Radar Detector Reviews", or various incarnations of that wording. The click thru dropped to about .6, and then was continually being slowed because it would drop below the .5% ratio.

The upside, the people who clicked on the generic link had a significantly higher conversion rate. The downside, trying to keep the ad active.

Side note: Adwords Advice - If you do bid on actual company names, you have to be very skillful on how you write your copy. Otherwise, about 25 to 75% of the clickthrus will simply be from people that are already members or own the product, and put the company name in the search box instead of the url box. This, of course, varies greatly by the product.

And another point: Before you think, "well, I will still bid on a company's keyword, use their name in my heading, and all will be good"... Do your research. For many companies this is forbidden, unless the ad goes directly to their site. In this case, you will spend the money..then receive an affiliate agreement cancellation from the company...and not got paid for your earnings.

A lot of the above relates more to the mainstream industry. Luckily, much of the online adult industry is successful simply due to nature of the business, and not because of their great business minds. So they tend to be a wee bit more leniant when it comes to using their names. But the basics still apply.