Keywords and phrases: less is better?

[dickbaker]

I'm fairly new to AdWords.

I've set up some ads using keywords and phrases that my competitors use. Initially I was getting on the first page with twenty-five cent bids. Then I tried the Google Optimizer tool, and added a lot of keywords and phrases, none of which are resulting in clicks.

At the same time, I've had to raise my bids on the relevant keywords and phrases to fifty cents.

Does the number of keywords and phrases used for an ad affect the Quality Score and bid amounts? Also, does AdWords seniority play a role in the bid amounts required to rank well?

Thanks for any replies.

[johnnie]

Stay in control. If you perceive the added keywords as not 100% focused to your specific landing page, then ditch them. They can only hurt your campaign and will only drive sub-standard quality traffic. Google's tools are nice, but should not be de-facto followed. Having to raise your bids is likely due to the low CTR of your ad.

Have you considered negative keywords?

[dickbaker]

Thanks for the suggestions, Johnnie. After posting my question, I decided to go into some of my ad groups and delete keywords and phrases that weren't performing. On one ad group I pared the keyword list down to just four.

I haven't yet applied negative keywords, but I will.

I'm just frustrated that I've spent $255 over the last month, got 30,000+ impressions, 845 clicks and only three sales. Since my net profit on a sale is roughly $20+, I have to either chalk it up to a learning experience or figure the ads are part of building a brand identity that people will become accustomed to seeing.

[johnnie]

It also helps to review your ad copy carefully. Do a search on your keyword(s) and check the ads listed. Does your ad grab attention by standing out? Copying competitor's ad copy brings the risk of 'drowning in the crowd'. Does the ad spark interest to the potential buyer in the product mentioned? And very important, does it include a call to action? Simple phrases like 'buy now' might look cliché, but they serve a dual purpose in that they scare off people who are just looking for information and attract those that really want to buy now. If you want quality traffic, you have to be very explicit in letting people know what you're about.

[justshelley]

If your net profit is around $20, I'd make two suggestions:

1) use long tail keywords and go for quality traffic at a lower CPC rather than quantity of traffic at a higher CPC

2) consider setting up the content network where you can usually get more leads at a much lower cost per conversion.