Choosing The Best Keywords for a Google Adwords Campaign

Excerpt from SEOChat.com:
Below are the most important objectives for a pay-per-click campaign:

1. Maximum click through rate by ad relevance and content relevance.
2. Maximum return on investment.
3. Best conversion rate for selected keywords

You probably noticed that using keywords that send massive traffic to your website are not among the objectives. Instead, you should be concerned with the keyword conversion rate and its direct relevance to your campaign's URL content and services.

The first objective is to be sure that the  text in your ads exactly matches your page content and services. Any mismatch increases the bounce rate and is costly for your campaign.

The second objective ensures that you are selecting keywords that could offer the best return on your investment.

The third objective ensures that since you are aiming for keywords that return the highest ROI, you should make sure that they give the best conversion rate. The conversion rate is defined as the total number of unique visitors making purchases or availing themselves of your services, divided by the total number of unique visitors to the website.

Let's walk through a sample computation of conversion rate. If you have a website with 300 monthly unique visitors, according to Google Analytics, then in one month, if 5 persons purchase your product or use your services, the conversion rate is around:

Conversion rate = 5/300 = 1.67%

Of course, if you have a new website, then you do not any conversion rate data. However, you can estimate the conversion rate based on how relevant or related the keyword is to your services and products.

Brainstorm targeted keywords. Start by writing keywords on a piece of paper that best describe your website/blog/service/products. Read more at http://www.seochat.com/c/a/Google-Optimization-Help/Choose-the-Best-Keywords-for-Your-Google-AdWords-Campaign/3/#PWpzxEBMrOu2S9JK.99

Using Google Traffic Estimator to gather the financial data for all of the targeted keywords in the region you're targeting.

Conduct an ROI analysis of those keywords. This is where you factor in and assign the conversion rate of those keywords, estimate average sales per conversion, estimate sales per month from conversion, estimate monthly cost in AdWords, etc. After your analysis, you're ready to decide which keywords will give you the best return on investment.

Go to your AdWords account and setup a campaign for the keywords you've selected. You can find some AdWords help from another SEO Chat article at http://www.seochat.com/c/a/Google-Optimization-Help/Google-Adwords-Guide/

Monitor your ad's performance, track conversions, customer inquiries, etc.

For continuous improvement, you can use the performance data of your AdWords campaign to spot weak keywords and make changes in order to further refine your campaign.

Read more at http://www.seochat.com/c/a/Google-Optimization-Help/Choose-the-Best-Keywords-for-Your-Google-AdWords-Campaign/3/#C1gH0BZqdsiBZFEF.99