A lot of website owners jump right into Google Adwords in the mistaken belief that they can make a lot of money with only a little time, effort and a few pennies. While it is true that you can make money through Google Adwords, the truth is that there is a fair amount of work involved in becoming successful at Adwords marketing and not losing your shirt. In particular, newcomers need to know about the "Google Slap" and how to avoid it. The last thing you want is to put in a ton of time and effort, only to get your whole account banned for life. If you charge straight into Google Adwords without any idea of how to use the interface or writing winning ads, you will not get rich quick, but go broke quick.
So, what is the secret for profiting with Google Adwords? Test Everything
Watch Your Daily Budget Carefully
When you are setting up your Google Adwords campaigns, one of the first things you will have to do is set your daily budget. The daily budget will be related to how much you will be able to spend per click. If you are dealing with a marketing area, known as a niche, which is competitive, you could be looking at least $1 per click. Therefore, if you set your budget to $10 a day, the most you will ever get is 10 clicks.
You can spend $10 in the blink of an eye, so set your budget to no more than $20 a day, and no more than 50 cents maximum per click. While this may not seem like a lot, that is $600 a month, on only one ad or ad group. So start small, and split test before ever increasing your budget.
Testing Everything - How to Set Up a Split Test
Once you have set your budget, you need to start writing your ads. Start with 2 different ads for your site. They should be identical in every way except for the headline and contain the keywords you want to use to drive traffic to the page you are sending them to. Then track your results to see which ad performs better. When you have a clear winner, pause the loser, and write a new ad headline to try to beat the winner. Run this split test until you have a new winner, and repeat until you are sure your headline is the best it can be. The goal of split testing is to improve your click through rate, or CTR, to get the best ad for the money, and an improved CTR on Google Adwords will also bring down the price of your clicks.
Time of Day your Ads Display
Depending on where you live in the world and what you are selling, you might want to split-test the times that you show your ads. Once you are sure you have a winning ad, you might want to set the specific times they are shown. You might want to make sure the ad is shown during business hours only, or during evening leisure hours, depending on the type of customer you are targeting. Track the performance of each time period for a couple of weeks.
Tracking Your Results Carefully
An essential part of getting the most out of Google Adwords is to track all of your results to make the most out of each ad campaign (known as ad optimization). Be sure to keep track of all your testing and results. Don't delete any old ads. Do keep testing, not just the headline, but the first line, the second, and even the visible URL. Many people fail at Adwords because they rush in too quickly, blow their budget, or don't have the patience to test and track. Split-testing on your Google Adwords account in order to get a better CTR will not only improve your results in terms of clicks, it will improve your CTR and get you even more traffic, for less money. Be sure to monitor your progress every day to be sure you are getting the most from your Google Adwords account.