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The first step to optimizing your pay per click campaign is fine tuning your Google Adwords ads.
What's the difference between good ads and bad ads? Click through rate, or the percentage of clicks your ads get compared to the number of times they're displayed.
So if your ad is displayed 100 times and gets clicked 3 times, your click through rate (CTR) is 3%.
The most telling metric of whether your ad is working or not is the CTR. If people are clicking on your ads it means you're driving quality traffic to your offers. What's a good CTR?
Three percent is considered very good in the pay per click business. Less than one percent means your ad needs to be improved.
If your ad is getting less than one percent you can try these tips to improve the quality of your traffic and raise your click through rate:
Eliminate "broad keyword matching" keywords. This will have an indirect impact on your CTR by lowering the number of impressions. When your campaign is fine tuned and turning a profit you can re-introduce the broad keywords.
Revise your headline. Try different approaches to see which gets the most clicks. Try these headline variations: Ask a question, state a fact, use the keyword in your headline.
Change your ad position. You can change your ad position by adjusting your maximum bid. Let your ads run ad different positions for several days in a row. A few days at the top of the listing, a few days in the middle, and a few days in the lower positions. Keep the ad position that gave you the best CTR.
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