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I wrote the following tutorial on Google Adwords strategy for a customer (https://home.mods4.net), and decided to cross post it here, as it may be useful for any budding intrepreneurs out there. You can change the figures/keywords shown here to suit your actual project and budjet, but the thoery remains constant...

Introduction

For each site I wish to promote I create 2 adword campaigns - one called whatever_hi and another called whatever_lo.

The _lo campaign contains very specific keywords (eg "Renault Clio Modification") that are very low in terms of cost per click (CPC) but also have less predicted traffic. The _hi adverts contain more generic keywords (eg "Car Parts") that have a much higher CPC but are more commonly typed into Google (so more traffic).

_lo Ads

The very specific keywords in the _lo campaigns should always generate an advert to us. They represent the best chance of a sale because the browser is searching for EXACTLY what we provide. To ensure that this is the case I set the budjet for _lo campaigns artificially high, at £100/day, so that we never lose potential sales on these keywords.

However, Google estimates that the _lo campaigns are likley to generate less than £10 of (well qualified) clicks per day, so even if there were 10 times the normal daily rate of searches on these keywords we would still capture all of them.

_hi Ads

The _hi campaigns contain common (fiercly competitive, which increases the CPC) keywords. These keyords generate a lot of traffic, but require a lot more clicks/actual sale. This is because hundreds of people may type just "subaru" into Google before there is one who both owns the car and who is looking to modify it.

That said, we still need to advertise to people who just type "Subaru" into Google, because any of these searches may be from a potential customer, but from a return on investment (ROI) perspective the larger the proportion of our budjet that can be spent on the _lo ads the better.

Budjet Considerations

So we pay for our _lo ads first, and then we buy as many _hi ads as we can afford from whats left of our budjet afterwards. There will therefore be a continual tweaking process (especially to start) to make sure that we are within our budjet.

If we exceed budjet on a given day we can reduce the _hi budjets for the following day as neccecary. When the daily budjet of a _hi ad is reached Google simply stops showing it till the next day.

[The customer] has suggested a £200/day budjet, so I have also set £100 each on each live _hi ad (Home and Subaru). We will ammend this figure as we see how much we are spending on their respective _lo ads.

Surley its not this easy!...........Wow! So simple, yet... not!

Nice one!