One of the basic steps is to identify a list of the most effective keywords, which will be used in your AdWords ad. This is particularly important, since if you bid on the keywords that everybody else is bidding on, it will result in you ending up with very costly clicks.
Use Keyword Search Tools
You can use any keyword search tools that are available online in order to determine the keywords that do not have too much competition and yet have lots of searches. AdWords Analyzer software can also be used for this purpose.
In fact, by bidding on enough keywords that are low-cost, you can actually do as well, or even better than if you should have bid for an expensive and popular keyword. Plus, you can also determine a budget limit, in order to keep control on the total monthly expenditure. In addition, you can also specify not including certain words in order to limit the number of clicks from people hunting for some related product or service that you do not offer.
Refine the Keywords
If you have budget constraints you could cut costs by refining the keyword, aiming at sub-topics of the main topic. For instance, if your topic is on Diamond, you could create a sub-topic "Diamond Jewelry". On doing this, your ad will only be displayed if the exact keyword phrase, which you need to include within quotes, is searched for.
Target the Correct Audience
Targeting the right audience is an obvious tactic. You can do this quite simply by choosing the language and countries that you are aiming for. For instance, you could leave out all countries where the major percentage of the population cannot understand English.
Perform a Split Test
One of the things you need to do is simultaneous testing of two or more ads, which is known as a split test. This will help you to find out which ad produces a higher click through ratio. Once this is determined, you could go about tweaking the weaker ad, turning it into a higher performing ad. This process should be done continuously in order to keep your ads at the highest click through ratio possible.
Track the Return-On-Investment
Although the click through ratio of every ad is tracked by Google, however, it does not actually track the conversion ratio. In order to track the conversion ratio you will need using a special tracking link. Attaching an affiliate system of tracking is one of the ways of doing it. This will help you to monitor in a better way whether each of your ads is producing return-on-investment.
Include Targeted Keywords
