1. Read and Learn Google’s Optimization Tips.
    http://adwords.google.com/select/tips.html
  2. Google AdWords provides matching options for search terms, allowing you to refine your ad targeting, and reducing your cost per click (CPC). Click here to view Google’s new multimedia online tutorial of keyword matching options.
  3. Until you gain more experience, be careful paying more than 5 cents per click. Refine and narrow your phrases until you get a low rate. (However at only 5 cents per click, for many keywords your CTR will be too low: I often start off bidding more than I would like to, to get my Ad in top results. Then as clicks start coming in and when I have a CTR greater than 1%- I work on refining my Ad. Then I lower my CPC and hopefully hold my position because of my good CTR)
    To determine bid rates:
  4. If each sale makes a $10 profit, and a given keyword takes 20 visitors to create a sale, then your break even point & upper bid limit is $.50 per click. The lower your bid price below this $.50 limit, the higher your profit

  5. In the beginning, set your bids low. As you gain experience and learn to determine what your maximum bid rate should be- then you should raise your bids to generate more traffic.
  6. To start, enter a low daily budget, like $5. this is a great way to test the waters without losing your shirt
  7. In the beginning watch your ads very closely and change them as necessary.
  8. Put your keyword list together first, and then draft your ad.
  9. Target key phrases, don’t use generic terms.
  10. Use the exact keywords or phrases (that you bought) in the title of your ad. It has proven to get a higher CTR.
  11. Test two ads at the same time. Google AdWords allows you to run two different ads with your keywords which will enable you to compare ad performances. Keep the ad with the higher CTR and replace the ad with the new one.
  12. Test & adjust the Ad copy as you go. Constantly tweak your Ad copy to try to get better CTRs.
  13. To achieve higher CTR, use exact keyword matching by putting your keyword/s in square brackets:
    [Buy vitamins]
    [Vitamins]
    Your ad will not appear for queries that include other keywords. For the example above, the ad would not appear for free vitamins or discount vitamins. It would only appear for the keywords: buy vitamins and vitamins.
  14. Be sure to create negative keywords for the terms that do not pertain to your promotion. This gives you more control over who sees your ads so you won’t pay for clicks that are unlikely to produce well targeted results.
    If your keywords are negative-matched, your ad won’t show if the user’s search includes that word. Add the negative character (-) in front of the keyword you would like to exclude. For example, if your keyword is satellite dish and your negative keyword is –free, your ad will not show when a user searches on free satellite dish.
  15. Always include both singular and plural versions of keywords.
  16. Add more keywords and more groups of keywords as you think of them.
  17. Create a separate Ad Group and Ads for your misspellings list, another one for your abbreviated keyword phrases, and so on.
  18. Double check your Affiliate URL link – make sure your Affiliate ID is in the link. Test your AdWord to make sure you end up at the desired page.
  19. After your campaign has been running for a couple of weeks, re-do ads with low CTR’s. Google automatically disables the keyword with very low CTR’s (less than .05%). You can get disabled keywords re-enabled by re-writing ad copy or adding new ads. Don’t give up on these ads. Just try something new.
  20. Keep in mind that you can stop your AdWords from running at any time by clicking on the “Pause Ad Group” link.
  21. Ramp up your effort during the Holiday Season. You will see a dramatic increase in clicks, and better conversion rates. That is, more people buy during that time. Try to have as many AdWords running as possible during those very lucrative months.

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