1. Build your initial keyword list with at least 100-200 relevant keywords. It's not hard coming up with an initial list of 100-200 keywords. You should be able to come up with at least 10 relevant keywords on your own. Open Notepad (or text editor of your choice) and place each keyword you come up with on its own line. Use a free keyword tool like Good Keywords, WordTracker or the Google Sandbox and search each of your first 10 keywords. Copy the top 10 search terms returned by the keyword tool and paste them into your text file under the main keyword that was searched. If the tool returns less than 10 search terms for a particular keyword just copy all that are returned.
2. Start with a single ad group containing all of your initial keywords. You are not going to know right off which keywords are going to be better than others. So you might as well start off with them all in the same ad group. One ad group is far easier to manage than many. Once your campaign has run for a while you will start to see which keywords are drawing for you and which are not. You can then create additional ad groups focused with more focused ads.
3. Write TWO versions of your initial ad. The second ad is worded only sightly differently from the first. Small differences can have a huge impact on which ad succeeds and which doesn't. After each ad has received 30 clicks or so, keep the one that converts best and replace the one that isn't performing as well with a new version that is slightly different again. You continue this process each time changing only one ad (slightly) with the goal being to continually improve your conversions. This called “split testing” your ads.
4. Set individual bids for each keyword. Where your ads appear matters. Most people will NOT look past the first page of search results. Most search engines display only 10 PPC ads per page. You want to make sure that your ad places at least in the top 10 to get the most clicks. Therefore adjust the bid for each keyword so that your ad will place in the top 10 when that particular keyword is searched. Position 3 or 4 work best for most ads.
5. Enable Google Analytics on all your web pages. Even if you're not running your ad campaign in Google Adwords you still want to put the Google Analytics script code on ALL your web pages. Google Analytics will provide you with a wealth of information that can help you fine tune your PPC ad campaigns and make them profitable. Best of all... Google Analytics is FREE! So there's no reason not to do it. 'Nuff said.
6. Peel and stick your best keywords. Once you see which keywords are working best take them out of your initial ad group and put them into their own ad groups along with other similar keywords. The information you get from Google Analytics can really help with this. Then write ads specifically for each of these new ad groups that are focused on the keywords in these groups. Again split test TWO similar ads for each ad group.
7. Monitor your competition. Go to Google. Run a search on your first keyword. Pick any one of the ads that appear on the search results page and write down the URL from the ad. Make note of the date the ad appeared. Repeat for the next keyword in your list, etc. A few days later do it all again making note of whether the same ads appear again for that keyword or not. Repeat this every few days and keep track of the number of days a particular ad keeps showing up for each of your keywords. The reason a particular ad keeps showing up for a particular keyword is because the ad is making money with that keyword. The longer an ad keeps showing up for a particular keyword, the more profitable that keyword is. An ad that keeps showing up in a top position for a keyword over time attests to that keyword's profitability. These are the keywords you want to use in your PPC campaigns. Also remember to note the wording of the ads. Does the wording change over time? By how much? If the wording remains relatively consistent it is because it converts really well for the owner of that ad. You may want to use similar wording in your own ads.
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