First, How do Google Adwords work?

AdWords from Google allow you to easily place adverts directly on other peoples websites and these adverts are directly related to the content of that website.  You also get to appear in the sponsored listings on the right hand side of the Google search page.  You can set a different amount to pay per click for the Google search page adverts than you do for the content adverts (ads that appear on other peoples websites).  This was a change that Google made a couple of years ago.  Prior to that change you had to pay the same for search result clicks as you did for content clicks.  This was how webmasters using Google Adsense made a lot of money.  In order to appear on the search pages for some keywords you would have to pay quite a high price for your pay per click.  Webmasters would get a percentage of this if your advert on their website was clicked on.  After the change you could pay a lower amount for content pay per click than you did for search PPC.  Therefore webmasters did not make the high earnings from the adverts on their sites as advertisers lowered the amount they were paying for content PPC. 

Content PPC adverts are linked to the content of the site on which they appear.  If you are selling green widgets then your advert will appear on sites that may discuss widgets or have articles and information on widgets.  Google wants ads that are relevant to people's searches. This is the key to being successful and make money with Google Adwords. If you can create ads that are relevant to your search terms (keywords) then Google will reward you by giving you high placement at costs lower than ads that are not relevant. In other words, if people see your ads and click on them, you will pay Google less for your ads. If people see your ads and don't click on them, Google will charge you more for the ads. that people do click on. If you get a really lousy click rate, Google will unilaterally make your ads inactive.

How do you get people to click on your ads and get a lower cost with a higher placement? The key is relevance to what the searcher is thinking. This means you must try to get into the head of your potential customers and create an ad or ads that mimic the thoughts of people looking for something.  Don't burn your money - play it crafty and make it work for you instead.  Also try a couple of the products that we recommend.  A hundred bucks spent at the beginning of your campaign can make the difference between you giving up on adsense and actually make money with Google adsense.

Make Google Adwords work for you

Here are some simple tips to help you
make Google Adwords work for you:

Make Google Adwords work Tip #1:
Get to know your target audience.

Think like your target audience thinks.  Do not fall into the trap of thinking that your audience will search on particular keywords.  Find out what people who come to your site are REALLY searching for.  Check your hosts statistics files (usually found from the control panel).  Also try to think like your target audience.  If YOU were looking for something that appears on your site what would you REALLY put into a search engine?  Write down the top search terms that you can think of that describe your business or service. I suggest keeping this list on a spreadsheet if at all possible - this will make it easier to organize and submit later.  Use the Overture Search Suggestion Tool to get an idea of the popularity of each search term and enter this number under a 'monthly impressions' column in your spreadsheet.  Add some extra modifying words like 'cheap' or 'discount'.   You pay nothing extra to simply list more keywords. Additionally, the more keywords you have, and the more specific the search phrases are, the more likely that your visitor will be truly interested in your product or service. 

Make Google Adwords work Tip #2:
Do not bid to get in the top position.

Most people do not just look at the first position but look and click on the ad that looks most interesting to them out of the first few. While position # 1 is typically the best, it is often too expensive to bid on and the number of additional clicks you get do not justify the additional cost. You will find that there is frequently a large bid price gap between positions #1 and #2, and between positions #2 and #3. Also some of the clicks you get in number one position will be from people that just click on the number one position without really looking at the advert.  They will then be clicking the back button to check out adverts 2 and 3.

So you see by bidding for #2 or #3 position, your ad will likely get clicked on. Additionally, because you get a higher click through rate, your cost from Google Adwords will go down because Google rewards you with lower costs. The reason they do this is Google wants higher click through rates. They make more money.  Check out also Swapclix

Make Google Adwords work Tip #3:
Use Exact Match Keywords.

Google Adwords offers options on you can you can set your keywords matches from broad matching to exact matching.  Remember, the default setting for AdWords is "Broad Match".

When you set it for broad matching, any search phrase with any of your keywords will get a hit. The problem is, while you may get a higher "click through rate" (CTR) you may end up with many clicks by people who are not interested in your product. While this may help you with your CTR, it will likely cost you a great deal of money with a negative return on your investment.

With exact matching, your ad will only show up when your exact keywords match is searched on. There is a higher probability that you will receive clicks by people interested in what you have to offer. Since CTR is determined by the number of times Google shows your advert divided by the number of times searchers click on your ad, your CTR should be quite high and Google will reward you with lower Adwords costs and a higher ROI.

To do an exact match, bracket your keywords like this [green widgets].

Make Google Adwords work Tip #4:
Negative Keywords.

Edit your Adwords campaign to filter out searches on unwanted keywords.  For example, it you are not giving away widgets then you do not really want anyone coming to your site if they search for 'free widgets'.  So you could filter out 'free widgets' by using the minus sign e.g. '-free widgets' or even '-free'.

Make Google Adwords work Tip #5:
Start off with lots of keywords.

Start your campaign with as many keywords that you can that relate to your site.  Monitor them and cut them back if you find that some keywords are not being searched for or you are not getting any clicks.  Remember to use the negative keywords to filter out the unwanted and exact keyword matches.  A longer list of relevant search phrases also increases the likelihood that you will attract visitors to your site at a lower cost. That is because it is often possible to bid less for a click if the search term is less popular. More search terms, bid at a lower cost, mean more traffic to your site for fewer advertising dollars = Make money with Google

Make Google Adwords work Tip #6:
Rotate your adverts.

Google lets you have more than one ad for your ad group. It then rotates them and keeps track of which ad gets the higher CTR. Google Adwords will then begin to show that ad more often than the ad with lower CTRs.

The best way to do this is to test and run only two ads at a time. This way you can tightly manage your variables. Some tests have shown several hundred percent changes in click through rates just by switching around the first and second lines of an ad.

If you start split testing more than two ads at a time, the variables will quickly get out of control.