Forum Moderators: buckworks
One is categorizing the type of ads you are running, then turning a category off for a time and then analyzing your costs to profit ratio.
Example: One category targets your main product line, another targets the accessories to that product line.
Turn off all ads related to the accessories for a week or so and see what it does to your bottom line sales and your advertising costs.
After doing this for a while you should realize what type of ads generate profits and which type of terms just generate traffic.
I should add that I'm nowhere near top on google search. I'd advise targeting search success, as a more efficient ROI - it doesn't cost.
I'm now going to find out how to improve my search status...
If I'm looking to buy something I generally scan over the Adwords first, as they are generally trying to sell. Some searches just bring up millions of 'junk' like shopping comparisons and that auction site.
If I'm looking for information, natural serps it is. Thst's just the way I do it, but everyone's different.
As an aside...with YSM/Overture we have a 1st page natural listing, so we bid for the 4th position (1st on the side). This gives us three listings which includes one in the blue down at the bottom.
The tangible results of this strategy is a 300% increase in sales and a 20% conversion rate.
Bottom line...you never can have too much exposure.
Organic results are the way to go, but adwords saved the site recently when Big Daddy struck and I was dumped into supplementals.
There's no easy answers, it all depends on budgets and targets.