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Pay per click is a very powerful form of advertising however you must know what you are doing otherwise it is easy to lose a lot of money. The first step is to make sure you select the right keywords that are relevant to the product or service you are marketing.
Also a good tip to follow is not to market your product or service directly unless you are offering some kind of free trial. Remember that people usually want to try things out before they spend any money on it so look to promote products that offer free trials as they usually convert better. You may even focus on simply building a list of subscribers and then pushing your products in the back end once you have built a relationship with your visitors through your newsletter.
The google keyword tool is usually more than sufficient to get the right kinds of keywords. Also make sure to take advantage of the landing page function that will allow you to get relevant landing page keywords. If you are using google adwords then it is important to develop a good quality score in your ads and account.
The best way to build a good quality score is by showing relevant ads that get a good click through rate(ctr). You can increase your ctr by adding the keyword in the title and body of your ads. Remember that the keyword gets bolded in the results so this should help with improving ctr. Also keep your ad groups small as this will make your ads more relevant.
Also make sure you are checking the quality score of your ads in your adwords account by activating it from the dropdown menu in the keywords section. Also be sure to use conversion tracking so you can know which keywords are actually making you money. If you are an affiliate see if you can get your merchant to add this feature to their landing pages. You want to pay more for keywords that are actually making you money and either delete or lower the bids on those keywords that are not converting into sales.
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