I began with a half dozen keyword phrases. Immediately got high impresssion counts, and CTRs well above the minimum. Moved on to [] and "" the phrases. CTRs remained high and some jumped to double figures. Great!
Now I have a list of phrases and variations with an array of different CPCs and CTRs. And my Florida-numbed brain has no idea what logic should be guiding my next steps in refining the keyword list.
I think you'll get lots of great advice in this forum - and I wish you every success with AdWords!
My quick $0.02 regarding keyword tactics is not really related to whether they should be broad, "phrase", or [exact] matched. But, from a foundational point of view, I think the following basics are very important.
My keyword tips would be to:
* Use very specific keywords, rather than general ones.
* Avoid single-word keywords (or at least be suspicious of them, as they aren't usually very successful). Instead, start out with 2 or 3 word keyword phrases.
* Use keywords that precisely describe the products and/or services that you actually have to offer.
* Collect all keywords that are highly related to a particular product or service into a single Ad Group, and then show an ad about that exact product or service. Use the 2500 Ad Groups available to you in your account to your advantage - to advertise each product or service that you offer in a very targeted way.
* Avoid 'what if' keywords. My favorite (and true) example of a 'what if' keyword: an advertiser selling off-road truck tires ran on the keyword 'air'. Well, because tires have air, 'what if' someone searching on 'air' might also need truck tires? Better to run on the keyword 'off road truck tires' instead.
* Thoroughly understand how each of the keyword matching options functions. Then make an informed decision, and don't hesitate to experiment. Full details on the matching options are available in the AdWords FAQ.
* If you using broad or phrase matching, then use negative keywords to your advantage. Info on this is also in the FAQ.
IMO, these basic tips will get you started on the right foot. Best of Luck! ;)
AWA
I have had no trouble choosing keywords that work well for me. Getting traffic volume and targetting "qualified" shoppers has been straightforward.
My confusion is more over keyword cost/benefit issues;
Do I put my budget into a few keywords that get high CTRs or spread it across a larger group with a lower average CTR?
Do I just spend on expensive effective keywords or should I be searching for lower CPC alternatives as a routine chore? I notice that the CPC has been going down as the CTR and impressions go up, on my best keywords.
Why do so many posts here talk about generating massive keywords lists? Is this more about traffic or cost control?
If you sell red fuzzy widgets, between exact and phrase matching the combinations those 3 words can come in, and adding a few other common words seen with those search results, you can easily end up with 50+ keyword combos for just those 3 words.
As far as budget goes, it really depends what you're trying to accomplish. Without knowing how you personally seperate out KWs into campaigns, and what you're purpose is, people could give you ideas, but that's something you're probably best figuring out as you go.
Once you have your main keyword list set. You'll want to keep an eye out for other keywords that will also work. You can check some options through the Google Sandbox for what else google would show your words for in broadmatch, or do some KW research.
The best way to lower your overall price is to raise CTR.
Skier, have you considered looking into a conversion-level tracking system? WebTrends and Omniture both offer them although they are expensive. Adwords is also offering a free service that should do the same thing and is probably worth looking into.
Once you can see which keywords are converting to sales you'll be able to assess their cost-benefit and decide which keywords are paying for themselves and which need to be cut.