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Vigilance, micromanaging and attention to detail can help you avoid some common and costly mistakes of PPC advertising. What are those mistakes? Here are the terrible 10 that are typical to most pay per click campaigns.

by Josh Prizer

Vigilance, micromanaging and attention to detail can help you avoid some common and costly mistakes of PPC advertising. What are those mistakes? Here are the terrible 10 that are typical to most pay per click campaigns.

Big, Bulky and Broad Ad Groups for Your Keywords

If you put all your keywords into just a few big and broad ad groups, it's time to restructure your account. You are missing out on important flexibility that pay per click advertising allows. Tighter ad groups allows you more focussed, relevant ads.

Not Using Negative Keywords

Negative keywords reduce unwanted impressions, and more importantly, unwanted click throughs. However, with increasing priority given to "quality scores" and click through rates in the PPC engines, it's key to trim the fat from your keyword campaigns. If your company sells "widget management software" then be sure that you have keywords like "-serial" or "-free" assigned as negative keywords (unless, of course, you offer it for free in some manner). You can find good negative keywords in your log files or when you build your lists.

Not Enough Testing

Split-testing your ads is critical. Even the smallest of changes can boost results. In addition to testing your ad copy's "call to action" or value statements, every ad has multiple variables to test. The titles, the two lines of copy, and display url all can be optimized. If you don't have time for hands-on testing, a good professional pay per click management company can run daily split testing for you. You'd be surprised how well this can pay off.

Not Precisely Tracking Results

Of course, testing your ads and fine tuning your keyword lists only works well if you are tracking results. The search engines will tell you what your click-through rates are ... but you need bottom-line results. You need to know your return on investment or what your cost per action is. It's not enough to know that you spend $5,000 and get back $10,000. You might be able to spend only $3,000 and get that same $10,000.

Not Getting Keyword-Level Tracking

Proper and exact analytics or using an experienced pay per click management company is essential to get the data you need. If you have keywords that are not performing and leaking your account on a daily basis, you are throwing money away. Getting results to the keyword level allows you to adjust bids for maximum effect. If you have one keyword with a $1.34 earnings per click and another at 37 cents, this is key information that allows you to maximize profits. Lower one bid if you are above your "EPC" and raise another to eek out more profits from that sweet-spot keyword. Don't waste money on a daily basis.

Too Generic of Keywords

While some generic keywords can drive a lot of traffic and even be very profitable, they also can be filled with pitfalls. Negative keywords may not be enough to save you from going in the red on a generic keyword. Often, the users doing these searches are at a very early stage of the research and buying process. Again, this is another important reason to track results on a keyword basis.

Not Going After Long-Tail Keywords

This follows the above item on generic keywords. Building a list and individual ads for the long-tail keywords can be a major time-sucker. It can also be profitable if the task is performed correctly. Those earnings per click will likely vary widely from a generic keyword like "mp3 player," "sony mp3 player" and "sony 2GB S610 walkman video mp3 player." One consumer is doing research, the other knows what they want and is most likely looking to purchase.

Combining Search and Content Networks

If you don't want to get burned by click fraud or poor traffic, you need to make sure your content network campaigns and your search network campaigns are separated. If you don't know what this means, chances are they aren't separated in your account and you are likely losing money. Ideally, you would have separate campaigns for each, along with precision analytics to know exactly what keyword from which source is converting for you in the content network.

Not Geo-Targeting a Local Business

Local businesses that attract clients from their region must take advantage of the geo-targeting that each of the major PPC engines offer. Bringing that local clientele to your front door on non-local keywords can increase profits greatly.

Not Frequently Monitoring Your Accounts

Okay, so you don't do daily split testing even though you should. Maybe you don't continually monitor your earnings per click at the keyword level, even though you should. Still, a lot of PPC advertisers don't even frequently check into their accounts. Google, Yahoo and MSN are increasingly slapping keywords with the "Inactive for Search" status to get you to improve your quality. They may be slowly picking off your keywords -- and your profits -- one by one and you aren't even aware of it.

The Terrible 10 of Pay Per Click Advertising is a lot to consider, but it's vital for healthy pay per click campaigns. Whether you can actively manage your PPC accounts at this level or you need to hire a pay per click management company to do it, vigilance and precision can make a huge impact on your bottom line.