We’re building a P2P marketplace for adventure tours. The space is super-crowded and plenty of companies have already failed, but we’ve done something that, to my knowledge, no one else has - turn a profit with AdWords.
One of the key reasons is our use of video. By allowing the customer to “experience” the tour ahead of time, it creates a stronger emotional connection than a static listing can. Combining that with highly-targeted ads, we end up with conversion rates in the 5-6% range. This is extremely high for the industry, which allows us to cost effectively bid for clicks.
The interesting part is we only discovered the effects of video recently and should still be able to improve the efficiency of our listings & keywords as we evolve. We’ll also benefit from network effects - instead of finding customers specifically for the tours we have like we do now (expensive), we can acquire an ordinary traveller and show them relevant tours we already have (much cheaper).