It's good that you are looking for ways to save costs.
It is definitely possible to get good keywords with $0.5
But normally, $0.5 keywords are not very competitive.
But for a lot of people who only search for cheap keywords, I would say that cheap PPC cost doesn't guarantee higher profit.
It all depends on whether the traffic is your target customers.
Let me show you 2 scenarios:
(The numbers might be a bit extreme so that you can see the clear picture)
FIRST
You only find cheap keywords to place PPC ads on.
But the traffic is not targeted and only have, say, 0.2% conversion rate.
If your $$/sale is $50, then for every 1000 clicks, you make only $100 while paying $500 for the whole ad campaign.
This equals -$400 in total loss.
SECOND
You pay $1 for better keywords.
The traffic is pretty targeted and you get 2.5% conversion rate.
If your $$/sale is $50, then for every 1000 clicks, you make $1250 while paying $1000 for the whole ad campaign.
That's $250 in profit.
Anyway, I'm not saying that noncompetitive keywords are bad!
If the traffic from those noncompetitive keywords are your target customers, then go ahead. You will still get good conversion rate at cheap price.
Hope this helps
