1) Expand your keyword list. Brainstorming an intuitive set of keywords related to your products or services is the best way to start your campaign. You can easily expand your intuitive list by using free tools available on the Internet, besides the search engines tools. Bid on as many relevant keywords as you can. Expanding your keyword bidding list will allow you to get more traffic for less if you bid on less popular yet relevant keywords.
2) Estimate traffic. Most search engines allow you to see how much traffic you can get per keyword. Based on that information, you can estimate how much traffic you can get for your entire list of keywords. If you are not getting all the traffic you want and all possible keywords have been covered, start thinking about key phrases or keyword combinations. While single terms are often more popular, 2 or 3 term key phrases can often bring more qualified traffic at a lower cost.
3) Promote products or product categories separately Search engines like Google and Yahoo! allow you to create several groups inside your campaign. This also allows you to be more specific with keywords and ad copy targeted to each product or category you want to promote. Each click though should direct your visitor to the specific product that you are promoting. You'll find out that you can get higher click through rates when your ads contain the specific keywords you are targeting in a group. You may also find that smaller, more targeted keyword groups are easier to manage.
4) Manage campaigns at a granular level to achieve better ROI Advertisers can achieve greater returns for their SEM campaigns when they are able to manage them down to the keyword level. As keyword listings grow to get more traffic, it becomes a challenge to handle campaign details manually. Employ appropriate technology to track conversions across search engines or seek professional support. By using the appropriate technology, advertisers can improve their campaigns by bidding on more effective keywords, not necessarily the most popular ones. An extensive list of less expensive keywords can probably bring better results, but will be a lot more cumbersome to manage unless automated optimization technology is in place.
5) Bid for a lower and less expensive position Remember you don't always have to be first. A good tip is to aim for the first page as most searchers quickly scroll through the entire page but not necessarily click on the second page. Research has shown that listings at the top and bottom of the page are more likely to get noticed than those in the middle.
6) Advertise locally. If you concentrate on a particular geographic area, why not use terms such as city, state or metro area to attract those searching for nearby providers. You may find out that adding a particular location to your list of keywords can turn out to be less expensive and bring you more targeted customers. If you are a multi-location advertiser or directory, going local on your list of keywords is imperative. However, dealing with several locations will require appropriate optimization technology to automate campaign management.
7) Write relevant and enticing ad copies The title and copy of your adtext are the most important drivers of leads and potential customers. Give your potential customers an extra incentive or advantage. People love “on sale” or “free shipping” offers, for example. You should also include a strong call-to-action such as deadlines or discounts. Limited time or % off are good examples. But remember, your landing page needs to reflect the offer in your ad. No misleading allowed.
8) Define profit-based metrics. You need an effective strategy to make your campaign profitable. As a general guide, aim to bid for less popular low-cost, relevant keywords. They produce a better return than the popular ones. You can also define profit-based metrics, such as margins, cost per lead or sale to determine your maximum bidding level. If it takes you 10 clicks to get one sale, do not pay more to get them than what you will be able to make when a visitor converts to a customer. But don't forget to account for the lifetime value of a customer when calculating success objectives.
9) Automate ROI/profit optimization based on business rules. Whenever possible, apply optimization technology that helps you stay within your budget and avoids an overflow of leads. Based on your defined profit-based metrics, set up tools that automatically deploy or pause your campaigns according to your budget caps or available inventory.
