Google AdWords is a vicious system, and if your someone wanting traffic with fast conversions then AdWords is the way to go (or PPC in general), but there again keep in mind most generally you will not profit right off the bat. Which granted there is some markets out there where you will break even as soon as you launch your campaign. Then you got markets that are totally saturated therefore you have to optimize like a freak to get it profiting some of these markets are insurance, dating, and other similar super competitive markets.

Let me discuss some strategies that will help you get your PPC campaign into profit mode. Keep in mind though PPC is about testing, the more you test the better of you will be.

1. Keyword Matching Options: Always pay close attention to your keyword matching options I can’t explain to you how important this is. When you first launch your campaign make sure your using exact match, then maybe slowly take it down to phrase match and then start eliminating negative keywords that would usually show up in your phrase match. Just make sure your Ads are highly targeted.
2. Landing Page Optimization: I see sites all the time where people are never testing their landing pages. You should always test your landing pages. I have had affiliate sites that have converted 2-4 times higher by just removing certain elements or by moving the elements around into other areas. When the user hits your landing page that exact product their searching for should be right there in front of their face. If the product is not directly on the landing page it can tremendously have a downfall on your conversions becuase most generally if the user doesn’t find what their looking for as soon as they hit your landing page they just hit their back button.
3. A / B Testing: Always make sure you A / B test your ads, this is vital for any campaign. Which granted you might find that sweet ad that just keeping driving clicks like crazy therefore out performing your competitors. If you find an ad like this keep it, but then again maybe do some more A / B testing.
4. Stay Away from Click Happy Positions: Test your ads in different positions most generally you can get a 50 percent decrease in click cost by bidding down to positions 5-8, but at the same time getting higher conversions. I don’t know what it is, but it always seems that the people who are clicking on the number one-position are always click happy. Which I’m not saying position 1 is a bad position at all, but if you can get dramatically cheaper clicks with higher conversions from a lower positions then do it. You just have to test it and see how it works for you every market is different.
5. Bidding to Low: Some people will bid so low that they bid on the 2nd page that is a huge mistake. The reason being for is because you never get any clicks therefore never getting any conversions or data collected for your AdWords Campaign. You got to know how to work them top positions almost 90 percent of all click traffic is going to that home page. And yes position 1-3 gets the most, but keep in mind sometimes bidding on them positions can result in a lower conversion ratio, but at the same time your paying 2 times as much for clicks as what you would in positions 3-8.
6. Search Query Reports: You should always run a search query report through AdWords the reason being for is because it gives you an idea of what negative keywords you should eliminate. This is highly important to use specially on broad matched keywords. You could have a keyword in there that is drawing 500 impressions, but no clicks therefore resulting in higher click cost. Taking care of little precise elements like that can dramatically help your campaign out. You have to treat it like your baby.
7. Not tracking Conversions: Always make sure you are using your conversion tracker. This will tell you exactly what keywords are converting and what keywords are not converting. The keywords that are drawing a ton of clicks, but no conversions get rid of them. Keep in mind though to make sure the keyword is relevant to the landing page. The reason I say that for is because you could have a great keyword, but your just optimizing it for the wrong page.

There is so many variables to PPC, but the main idea behind  PPC it to test, test, and test (and spend money). I think a big majority of people give up before they actually even start testing the thing is it can take a good 3-4 months to get a solid campaign going. Which don’t take me wrong you can launch a campaign and start profiting right off the bat, but most generally the competitive markets are not like this.

You have to test and find out what separates you apart from your competitors through out your Ad Copy. Creating high quality ads will keep pushing your Ads up, but at the same time ultimately bidding down, but then again the ad will move back up–it’s a strategy, but well worth the time because when you get a campaign running you can just let it roll.

Another thing is with PPC is that you have to put a ton of money into it just to build up your historical data specially on new accounts. I had one new account I used and I was paying around 3.50 a click for one particular market and never even touched the Ads well I did a bit, but the thing was my AVG. CPC cost dropped down from ~3.50 to around ~1.50 after 2 1/2 months of just spending. That is a ~42.8 percent drop now tell me if spending don’t decrease your click cost ? I think it does huge time which there again keep in mind to test your Ads, so you can get the fullest out of your campaign.

Building a profitable PPC (Pay Per Click) campaign can take time which granted you can profit off PPC right off the bat, but generally that’s not the case. From what I have noticed through out the social networks on the web is that a big majority of people do think their going to profit as soon as they activate their campaign, then when they turn it on their losing money thinking their doing something wrong.

Guess what their doing nothing wrong nor are you doing anything wrong. See the idea behind PPCis to test, test, and test. You have to make sense of it which I’ll get into deeper discussion about that through out this blog post, testing is the key factor. When you test your on-your-way to build a profitable campaign it can take time - sometimes it can take at least 3 months to get a campaign running really good, but then again you still have to keep testing and seeing what you can improve.

Let me get into some of the key factors that will help your campaigns tremendously.

1. A / B Testing: I can’t even say how important this is you should always A / B test your Ads along with your landing page don’t be lazy and just do it. The reason i say don’t be lazy is because a lot of people over look this type of stuff (small changes will make huge changes).
2. Create Laser Targeted Ad Groups: That’s right create laser targeted Ad Groups don’t put 100 keywords under one Ad Group try to limit your keywords 1-3 keywords per ad group. Honestly I don’t ever do more then 3 keywords per ad group most of our ad groups we create are no more then 3. If your wanting to expand your search capabilities then learn to use your keyword matching options.
3. Negative Keywords: I can’t say how important this is make sure you are always searching for negative keywords. If you find a negative keyword through your search report take it out. Negative keywords are keywords that are irrelevant that do not drive clicks nor sales.
4. Conversion Tracking: Make sure you track all your keywords, see which ones are converting and which ones are not converting. This would fall back under the category of adding negative keywords you can also use the conversion tracking tool to see what type of ROI your getting through out each Ad Group and Keywords.
5. Content Network: We generally always disable the content network if we do enable it we enable it on a very CHEAP click cost bases. The content network does not convert very well which I’m not saying you can’t make money from it because you can, but keep in mind your conversions will be extremely low. Also always make sure you separate your content network from your search network.
6. Landing Pages:Landing pages can help with your QS which granted a lot of the PPC systems are algorithmically done, but then again keep in mind AdWords editors review the accounts in person too. If they don’t think you have a great landing page their liable to smack your scores I’ve seen it done many times. Try to create landing pages that are relevant as possible to what the user is searching for I mean I hope you would that only makes sense.
7. Keywords Direct to Page: You know this is one thing I see a lot of people doing they drive all their keyword traffic from AdWords into their home page. Matter fact we had a client doing that and I just couldn’t get him to understand why he needed to drive the traffic to his landing page with the actual product, but no he insisted that he was right on driving his traffic to the home page. You should never do this any experience search marketer will tell you this test it and watch what happens your landing page will convert way higher, but at the same time you’ll get a better QS score.
8. Testing to fast: Don’t test to fast try to collect at least 200-300 clicks per campaign before you actually make any changes. I know this can be a hard thing to do sometimes I get the tendency to play with my campaigns too soon. Don’t ever do this wait until you’ve collected enough data before you start changing things around.

There is so many variables to PPC, but if you start paying attention to the strategies above everything else will fall into place. PPC is very profitable if you work with it right, it just takes time to get a campaign going. Which granted you can profit on a new launch, but then again that depends on the market and etc. If you go into a new market that’s in need of a certain service or product and you have no competitors then most likely you’ll make a ton of money well speaking you set your campaign up right.

Another thing is with PPC is that your cost will go down after time (historical data). The more you spend along with testing, the cheaper your clicks will get. I have talked with people that have told me they have had PPC campaigns running for a solid 6 months and never A/B tested an ad one time, but their clicks dropped from an avg. CPC (cost per click) cost of 90 cents to 10 cents.

Which granted the guy was very famaliar with PPC and had a great quality score right off the bat, but he never tested he was spending around 6k a day on this campaign over a 6 month period, so that comes to tell you that spending will get your cost down along with many other things.

I wanted to write this post up because a lot of people seem to think there just going to jump into Adwords and start profiting right off the bat. Which granted it does happen, but if you have a new account or starting a new campaign it won’t always turn out like that.

See the thing is when you create a new account your going to have to spend a lot to get it going then eventually you will break even sooner or later, but like I said you’ll have to spend maybe a good 2k if not more to break even most generally on new accounts (if not more).

Here is a list of things below you should pay attention to:

Keyword Matching Options: I can’t tell you how important this is knowing how to match your keywords is a must. Another mistake that a lot of AdWords users make is going broad at the beginning on all keywords and that is not what you want to do. What you want to do is define a well set keyword list of maybe 100-400 keywords depending on your niche and use exact match. Therefore you’ll find out what keywords are converting and what keywords need improved or just straight out deleted.

Highly Relevant Keywords with Ad Copies: You should try to create highly relevant keywords to match your Ad Copies. Some people will go in and create 75 keywords under each ad, and really there no reason for that. The idea is to have very highly targeted keywords that are relevant with your ads; therefore, you’ll have a higher CTR level which will result in lower CPC (Cost Per Click) eventually after time (keep in mind time).

A / B Testing Landing Pages and Ads: You should always A/B test your Ads, let me reiterate you should always A / B test your ADS and landing pages at least your Ads for crying out loud. A / B testing your ads periodically is a must for a successful and profiting campaign.

Bidding To Low: Don’t bid low in the beginning stages, bid high as you can or at least bid in the sweet spot. When I say the sweet spot I’m referring to positions 5-8 because they usually convert better, but then again depends on the vertical your promoting. Just keep in mind to bid high on new campaigns (so your not on page 10) and also you might lose some money if not a lot specially when your testing a new account out with a new campaign.

Separate Content Network from Search Network: Make sure you always separate your content network from your search network becuase of course the content network will convert at a lot lower level. Out of all honesty I never even use the content network (I do, but not that much).

Not Setting Geo-Targeting: You should always use Geo-Targeting specially if your only shipping to certain countries or if your promoting an affiliate offer and they only allow US conversions then you better make sure you have your ads to only run on the US Google Search Network.

Not using the Conversion Tracking tool: You should alway use the keyword conversion tool specially on your own site. Now there is a few affiliate merchants that won’t allow anyone entering there tracking codes on there site, but honestly once you become good enough you will be able to fly blind no problem, but I still wouldn’t recommended doing this unless your very experienced.

Conclusion:
AdWords is like a black box, and you must know how to work it. If you use good sense you will be successful with using AdWords. The idea is to test, test, and test and if you can do that and have the patience then your heading in the right direction with it.

Relevant Links Below:
10 Worst AdWords Mistakes
10 AdWords Mistakes from Ubber Affiliate
15 Tips for AdWords Beginners

Ignoring certain things in PPC can take a total haul on your account and believe me there is certain things I have ignored at times well I wouldn’t considering it as I was “ignoring” them, but more then anything I wasn’t focused in completely as much as I should of been into that specific area.

What are important things you should really zoom in on?

1. Keyword Matching Type: Pay attention to your keyword matching options and if you find any negative keywords  make sure you add them to your negative side and try to use exact match when you first launch your campaign then you can possibly (slowly) start going down to broad or phrase match, but make sure you pay attention to what your negative keywords are because if not your account balance could sky rocket over night with no conversions.
2. Ad Groups: Try to split your keywords up into more relevant Ad Groups even if you have to create 1 keyword per adgroup. I mean it only makes sense if you have a keyword performing at a higher CTR (Click Through Rate) then why not. Also make sure your descriptions and titles are relevant as can be because this will improve your CTR big time I had one campaign go from 2-3 percent CTR to ~10 percent ctr by just creating around ~100 well defined ad groups with only 2-3 keywords per ad group.
3. A / B Testing: Always perform A / B testing and never quite. You need to squeeze as much out of your campaign as possible, so always make sure your testing at all times (Note: Be sure to test your landing pages to with website optimizer).
4. Keyword Conversion Tracking: Make sure you install the keyword conversion tracking tool this will dramatically help you. It will give tell you exactly what keywords are converting and what keywords are not converting, so therefore if you have any keywords that are not converting you can eliminate them.
5. Decreasing Bids to Soon: If you ask me this is the biggest problem in Pay Per Click is that people decrease there bids too soon, you always want to bid super high in the beginning stages of your campaign to collect data.
6. Landing Page Quality: Building the best landing page as possible and alway try to make improvements to it. I know some people say that having more content increases your ability to have a better QS (quality score), but I don’t really believe that which granted it might help, but honestly we have had affiliate sites and I know of affiliate sites that are performing very good such as having a QS of pratically great across the board.
7. Ad Words Tools: Use the tools provided by AdWords to your advantage such as the Keyword Tools and etc they can be helpful when I firs started using AdWords out of all honesty I didn’t see much use in them, but then as I started to play around with them I come to find out they were very effective and can be used for numerous things specially if your wanting to build your keyword list up.

Conclusion
There are many factors in the Pay Per Click game, but the idea behind it is to test, test, and test then see what results you get if it works then keep pushing that direction and testing more. Just make sure you use the tools provided by pay per click programs and use everything to your advantage, but like I said the idea is to test, test, and test that right there is the magic recipe to being successful with PPC.

I will have discussions with many of my clients from time to time about PPC (Pay Per Click) Vs Organic Search and some of them think that PPC is a waste of money until I explain to them the power of PPC and how it can be such as fabulous marketing model to use.

PPC is a very powerful marketing tool, so is organic search, but with contextual advertising services such as Adwords, Yahoo Publisher, and MSN Ad Network you can create very fast sales over night and when I mean over night I mean literally over night if you are a PPC guru then you know exactly what I’m talking about the thing is with PPC is that it takes skill and patience to get it going its not something thats going to happen over night.

Another big factor about pay per click is spending most generally the more you spend in the beginning the better off you will be for the future the reason being for is because you need to build your CTR (Click Through Rate) rate up then you can slowly start to decrease your bids also keep in mind they’re many other factors in the pay per click game such as account history and etc.

If your someone looking to get fast traffic over night or wanting to build momentum into a website that will be used to build e-mail lists and similar things to that nature then you will definitely want to use pay per click I have seen many website and companies grow from nothing to inc 500 companies with then a quickness.

I have seen many forums launch and build very fast by using pay per click networks for example v7n.com which has a user database of over 40k users was built through PPC and affiliate marketers including my self use PPC to generate revenue which I plan on promoting our affiliate websites through organic search, but right now my main focus is using PPC due to the quickness of traffic and sales that it can generate, so always keep in mind PPC is a very powerful marketing tool and don’t ever put all your eggs in one basket specially as strict as organic search engines are getting with paid links.