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Old 08-24-2011, 11:36 AM  
JamesGw
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You need to laser target your ads and make sure that your keywords have high buyer intent.

This is easier for physical products.

If you wanted to do an Adwords campaign for, say, the Xbox 360, the keyword hierarchy would be something like this:

video game console < xbox < xbox 360 < black xbox 360 = white xbox 360 < 60GB xbox < 60GB xbox 360 < buy xbox 360 < buy white xbox 360 < buy 60GB xbox 360 < buy white 60GB xbox 360

Adding words such as buy, sell, sale, shop, online, credit card, paypal, and whatnot to your keywords will GREATLY increase your sales even moreso than using the exact product. In fact, using buyer keywords like that will usually have a higher conversion rate than exact product name + description, even if the phrase with the buyer keyword is less specific.

You can push a 50% conversion rate with Adwords if you do it right.

The other thing to take into account are your earnings per sale. If you're only getting $5 per signup, then maybe Adwords isn't right for you. With a $.50 PPC, you'd need a conversion rate over 10% to do just break even. This'll be hard to do initially.
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