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by: KirtChristensen
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To run a successful adwords campaign and realize a profit is much more work than most marketers want you to believe. It is not a simple job of taking a word and putting together a little three-line ad and build a campaign around it. (Who hasn't thought about getting paid big bucks for writing those little bits of copy?) The responsibilities are much more complex than that. You have to watch the bids and how many sales you are getting, keeping the costs and expenses in check, and watch constantly the ads you have working and see if they need changes to keep them working efficiently.
One main key to a successful Adwords campaign is the positioning on the search results page of the ad. If a keyword term is popular there can be hundreds of pages of search results, and that means stiff competition for that key position.
The only way to make a profit is to draw in the greatest possible pool of buyers, and the only way to draw in a large number of potential buyers is to ensure that an ad is in a visible location.
Web surfers have an extremely short attention span, meaning they will only look through the first 5 or maybe 10 pages of search results/ads. This means the most desirable place for an ad is on the first 5 pages.
Since almost all keywords are going to have more than one advertisement making use of them (any less would result in a keyword so obscure that only one in a million browsers would select it, and while that one browser would probably make a purchase it is not enough to justify all of the production costs) the one at the top of the list is going to be the one whose creator is willing to pay the greatest sum of money per click.
Putting bids on keywords can be tricky to do. The marketer has to keep in mind not only how much money the competition is spending per click but the total amount of money they may have in their budget.
A ppc ad campaign that uses general keywords and gets placed in the top spot in the Sponsored Links section is most likely to attract more false leads between good profitable leads.
It has to be worth it.
If an ad can only be clicked one hundred times before the advertising budget is reached there are probably only going to be ten sales made. Unless those ten sales justify the amount of money spent on the campaign (as in the case of real estate) it is probably not going to be sufficient.
Careful tracking of the number of successful leads brought in by an ad is important as well.
Ads that are bringing in unproductive traffic (as in all clicks - no sales) will need to be taken off the campaign and changes made to its format or it's keywords revamped.
Whatever you do it is important to see to the details in order to have an Adwords campaign that is profitable.
Need to optimize or "fix" your Adwords & PPC campaigns? Kirt Christensen manages over $600k in PPC spending & knows what it takes to make your account hum! When it comes to ad words management, he's the man!