What You Don’t Know About AdWords Could Cost You Money

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AdWords can be an extremely cost effective method for generating new sales or attracting new customers.  Because there are so many different analytics that you can use, it’s possible to measure exactly how much it’s costing you to generate new conversions.

Although AdWords can be very cost effective, it can also burn a hole in your pocket.  If you don’t know what you are doing, you may be literally throwing money down the drain.  Even if you have some experience with AdWords, there may be small things that you can change that will save you a significant amount of money.

If you are worried that you may be throwing away money on your AdWords campagin, it would be well worth your time to read through the following mistakes that people commonly make with AdWords:

Improperly Structuring Your AdWords Account: I’ve talked to quite a few people who don’t put much time or thought into how they structure their AdWords account.  Unfortunately, this is a major mistake, and if you fall into this category, I can almost guarantee that you are spending more money on your PPC campaigns than you should be spending.

If you don’t know where to get started with structuring your account, two of the easiest areas are your campaigns and ad groups.  If you have an account with one campaign and poorly constructed ad groups, it’s time to clean things up.  By using high-level campaigns and grouping your ads in clusters that are closely related, you can significantly cut down on your AdWords costs.

Paying More for a “Better Quality Score”: If you are an AdWords veteran, you may be laughing and thinking there’s no way anyone could actually believe this.  In reality, this is a very common mistake among new AdWords users.  If you take a step back and think about it, it’s easy to see why.  People assume that the more they bid, the better their quality score will be, and the higher they will appear in the listings.  However, this is actually an ineffective strategy that will result in you burning through more money than you should be.

Instead of simply trying to throw money at your quality score, focus on the factors that will actually improve your quality score and should lower your minimum bid.  There are a lot of different elements, but they all come back to Google’s insistence that the experience should be relevant and useful to users.  Therefore, the more value elements such as your ad text and landing pages create for the visitors that come to them, the better your quality score will be.

Using Different Match Types to Improve Your Quality Score: If you thought that this was true, don’t feel bad; I know plenty of other internet marketers who have made the same mistake.  However, Google has specifically stated that neither of their quality scores is impacted by match type.

Unlike the other two mistakes we’ve discussed, this mistake won’t directly cause you to pay more money directly to Google.  However, a lot of new PPC users spend a lot of time tweaking and trying to perfect their match types in an attempt to raise their quality score.  Since we all know that time is money, if you’re devoting your time to this activity (which doesn’t actually impact your quality score), you’re not investing it very wisely!

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