From Deniz: Some Parts form the book: "Marketing and Advertising Using Google"

Choosing the Right Keywords
Selecting keywords is one of the most important parts of creating a successful AdWords campaign. To pick the best keywords, use this five-step process:
1) expand
2) match
3) scrub
4) group
5) refine
Step 1: Expand
First, come up with as many relevant keywords as possible. What does the business sell? What are the advertiser’s goals? If it’s to sell purebred puppies, some good keywords might be ‘purebred puppies’ and ‘purebred dogs.’ Even better are keywords focused on specific breeds, like “poodle.” List all keywords that come to mind. It’s a good idea to avoid less specific keywords, like ‘dogs,’ which usually cost more and usually don’t relate to a user’s specific search.
AdWords also provides a Keyword Tool (www.google.com/adwords/keywordtool) that generates keyword ideas (shown in Image 3-1). Access the Keyword Tool, enter keywords similar to the ones you want to find, and sort the results.
Step 2: Match
Google offers different keyword-match types to relate to a user’s search. They include broad match, phrase match, exact match, and negative match.
• Broad match means that all searches using that word (in any order or combination) will display the ad. For example, ‘purebred puppy’ will show an ad for all searches with the words ‘purebred’ and ‘puppy’. This could include searches for ‘buy purebred puppy’ and ‘puppy that is purebred.’ This is the default setting for all keywords.
• Phrase match requires the words to appear in order. “Purebred puppy” (entered with quotation marks) shows ads for searches with ‘purebred’ and ‘puppy’ in that order, as in ‘purebred puppy Chihuahua.’ Ads won’t appear, however, for searches with any words between ‘purebred’ and ‘puppy’. This narrows the audience.
• Exact match shows ads when the exact phrase is used in the search – without any other words before, between, or after. So ‘[purebred puppy]’ (with brackets) shows an ad for searches with just the words ‘purebred puppy’, not ‘purebred puppy advice’ or ‘purebred puppy veterinarian.’ This further narrows the audience.
• Negative match eliminates phrases for which an advertiser doesn’t want an ad to appear, such as ‘cheap’ or ‘free’. Negative matches are selected by entering negative keywords with a minus sign, such as ‘-free.’ This option prevents an ad from showing to people searching for ‘free purebred puppy.’
Step 3: Scrub
AdWords is geared toward relevance. Keywords that maintain the same standard give strong results. Irrelevant keywords should be removed from the keyword list. Delete any words that don’t relate to the advertiser’s business. Two- to three-word phrases are usually best.
Step 4: Group
Keywords should be organized into similar themes, products, or types in separate ad groups. This way, each ad can be written specifically for similarly grouped keywords.
For example, here’s a good way to separate keywords for chocolates into three different ad groups:
Step 5: Test and Refine
Users are constantly searching for different things, so advertisers must regularly test and refine keywords. Build on keywords that work, and delete others that don’t.



Boxed Chocolate


Valentine’s Chocolates


Swiss Chocolate
Keywords:
• boxed chocolate
• chocolate gifts
• assorted boxed chocolates
• gourmet chocolates
Keywords:
• valentine chocolates
• valentines chocolates
• buy valentines chocolates
• valentines candy
• valentines chocolate box
Keywords:
• swiss milk chocolate
• swiss dark chocolate
• swiss chocolate
Monitoring Performance and Analyzing an Ad’s Quality Score An advertiser enters a keyword and ad into the system. Now what? With traditional advertising, the work is done. However, with online advertising, monitoring performance and maintenance are part of the advertising model. Most importantly, advertisers should pay attention to Quality Score. Recall that Quality Score measures an ad’s relevance and sets the minimum CPC bid required for an ad to enter the auction. Ads with higher Quality Scores tend to: • get more clicks • be shown in higher positions on search results pages • bring more businesses and customers together Keyword Status Keyword status determines whether an ad is eligible to run in the auction. In other words, it determines whether a keyword is eligible to trigger ads on search pages. The keyword status appears in the ad group view (Image 3-2). There are two keyword statuses: • Active: The keyword is eligible to run in the auction (the maximum CPC bid is above the minimum CPC bid required) • Inactive for search: The keyword isn’t eligible to run on Google or on Google’s search network because the maximum CPC bid is below the minimum CPC required. (Note that the ad may still be shown on the content network.)
If keywords are inactive for search, the system offers a minimum bid required to activate that keyword. There are four ways to reactivate an inactive-for-search keyword: 1. Increase the keyword’s Quality Score through optimization. 2. Increase the keyword’s maximum CPC bid to the minimum bid suggested by the AdWords system. 3. Delete the keyword (if the minimum CPC bid to reactivate it is too expensive). 4. Do nothing. Occasionally, as AdWords gathers more data about a keyword (or as the factors incorporated in Quality Score change) a keyword may be re-activated without any action from the advertiser. However, doing nothing is not recommended.
Optimize Ads to Boost Performance andQuality Score
So far this lesson has covered strategies for developing effective keyword lists, writing quality ad text, and choosing relevant landing pages. Low Quality Scores usually stem from a problem in one of these areas.
Therefore, an advertiser can boost performance and Quality Score by picking and refining relevant keywords, writing powerful ad text, creating high-quality landing pages, and constantly testing and monitoring which techniques work best.
In summary, here are some optimization tricks to boost performance:
• Use two- to three-word keyword phrases
• Use keyword matching options
• Make sure keywords relate to the product
• Use keyword variations (such as synonyms or alternate spellings)
• Create similar keyword groupings, or themes, in each ad group, and ads that focus on that group
• Write clear, compelling ad text
• Include keywords in the ad text and title
• Include a call to action in the ad text
• Send users to the best possible landing page
• Test multiple ads per ad group
Going Local: About Local Business Ads
Local business ads are AdWords ads associated with a specific geographical location. They can appear when a user searches for specific businesses or services in the user’s geographic area. This option gives advertisers a good way to reach local customers. Local business ads are eligible to appear in two places:
• On Google Maps (maps.google.com) in the enhanced manner shown in Image 5-2.
• In the regular text-only format on Google.com and other sites in the Google search network.
Local Business Ads on Google Maps
Google Maps displays an interactive map next to both organic search results and paid AdWords ads. When a user enters a geographic search query, organic search results appear on the left-hand side of the map. Each of these listings is marked in the search results and on the map by a red balloon.
Local business ads appear above or below organic search results, are highlighted by a blue background, and are clearly labeled Sponsored Links. Up to four sponsored listings may appear per search. Each of these listings is marked on the map by a small white balloon. When the ad is clicked, the balloon expands into an information window over the physical location of the business on the map (Image 5-2). This larger balloon can contain:
• A headline (25-character maximum)
• Two lines of creative text (35-character maximum per line)
• A small, eye-catching image (125 x 125 pixels)
• A display URL
• The business name and address
Users who click the URL in the ad or in the information window are taken to the advertiser’s website.
Local Business Ads on Google.com and the Google Search Network
A text-only version of each local business ad is eligible to run on Google.com and other search sites in the Google search network. The way an ad looks varies by search partner. Typically, ads are labeled as Sponsored Links and include two to four lines of text.
In most cases, text versions of local business ads include the same ad text and display URL as the enhanced ads running on Google Maps. An additional fifth line of text also appears that includes the city and state of the business (if applicable).
Quick Performance Tracking: Campaign Summary Metrics and the Report Center
There are two ways to quickly glean AdWords performance data: through metrics on the Campaign Summary page and through the Report Center.
Campaign Summary Metrics
AdWords provides the following information on the Campaign Summary page:
Clicks
Clicks are the basic measure of success of an AdWords ad. Successful keywords are relevant and generate a lot of clicks at a low CPC. However, clicks can be deceiving. Clicks may just be a sign that people are curious about an ad; people may click on an ad frequently, but rarely turn into customers.
Click-through Rate (CTR)
Keywords with high CTRs may indicate that a keyword and ad are giving people what they want – and leading to conversions. But again, a high CTR is no guarantee of conversions or ROI.
Impressions
If generating awareness for a brand is important, the number of impressions can be a sign of success.
AdWords Reports AdWords reports (located in an advertiser’s ‘Reports’ tab) generate customized performance data for multiple facets of an AdWords account. Key features include: • Performance stats for site/keyword campaigns, URLs, ad groups, and the account • Customizable report columns to focus a report on only relevant data • Performance filters to screen for the most relevant information in categories such as cost, impressions, clicks, and CTR • Simple scheduling to automatically generate reports and deliver them to multiple recipients • The ability to create report templates for reuse