Selecting the Right Keywords

The keyword selection process is probably the most important of all when it comes to creating your PPC ad's. You'll need to select keywords that are specific to your product or service offering, but you need to be careful not to select keywords that are extremely popular, as this may deplete your PPC funds sooner than expected.

The keyword selection process begins by asking yourself just one question:

"If I was searching for a product just like mine, which words or phrases would I search for?"

Using your answer(s) to this question as your base, you can then use a thesaurus and common sense to start building your keyword list with plurals, synonyms, similar words, etc.

To see which keywords your competitors are using, simply try searching for them. If you see a PPC ad along the side for your competitor, then note that keyword down and add it to your list.

Another way of coming up with great keywords is to use the overture search suggestion tool: http://inventory.overture.com/d/searchinventory/suggestion/

Type in a set of keywords and it will list similar keywords, including the number of times that keyword has been searched for on Overture (Yahoo) in the last month!

There's often a fine line between selecting keywords that are either too specific or keywords that are too general. Try to keep away from these, as they can often result in wasted PCP funds.

A typical example of this would be an ad that I created recently for our latest product, TrackPoint, which -- not coincidently -- is an internet marketing return on investment (ROI) tracking tool. Although the product is heavily geared towards internet marketing, using such a broad term would have made it virtually impossible to compete with the other advertisers.

The term "internet marketing" is searched for 825,674 times per month on Overture alone. Combined with the huge number of different advertisers that target this keyword, the top bid for "internet marketing" on Google AdWords is $13.84 per click! With an average of 240 clicks per day, a single day of advertising alone would cost $505!

Now, unless you have an extremely high conversion rate of visitors to sales, or you're selling a high priced item that usually has a high customer acquisition cost, I suggest targeting more specific keywords. Not only will this decrease your overall competition with other advertisers, but it will also increase the chances of turning your newly found web site visitors into customers.

Back to my earlier example, I chose to be specific with my keywords. One keyword was "ROI tracking", which is searched for 1,828 times per month on Overture and has a much cheaper top bid. This keyword is also more targeted to the product I was marketing, meaning that a large percentage of people clicking on my ad should turn into customers.

It's also helpful to note that taking the top bid is not always necessary, and anywhere in the top 5-10 can generate great leads. This really does come down to budget and analysis.