Too Few Ad Groups For Your Keywords

Creating relevant, targeted ads are important. Avoid placing all your keywords into a couple massive ad groups. Build them tighter. With tight ad groups you can control more of your ad customization to increase relevancy.

Not Taking Advantage of Negative Keywords

Pay per click advertising has placed more importance than ever on click through rates and quality scores. It is vital to fine tune your impressions by getting rid of the non-relevant phrases that are lowering those CTRs. If you are selling an item such as "software for widgets" then be certain you also have those negative keywords like "-free" if you don't have a free trial version. One way to find irrelevant keywords that are costing you is to check your log files of your site.

Weak Testing

Split-testing your ads is critical. Even the smallest of changes can boost results. In addition to testing your ad copy's "call to action" or value statements, every ad has multiple variables to test. The titles, the two lines of copy, and display url all can be optimized. If you don't have time for hands-on testing, a good professional pay per click management company can run daily split testing for you. You'd be surprised how well this can pay off.

Not Tracking Results

Of course, testing your ads and fine tuning your keyword lists only works well if you are tracking results. The search engines will tell you what your click-through rates are ... but you need bottom-line results. You need to know your return on investment or what your cost per action is. It's not enough to know that you spend $5,000 and get back $10,000. You might be able to spend only $3,000 and get that same $10,000.

Not Getting Keyword-Level Tracking

Setting up good analytics yourself or hiring a professional pay per click management company can do the job. Not only do you get more bang for your buck by getting rid of poor performers, but getting tracking to the keyword-level makes all of your testing and work even more precise. You need to know your earnings per click. If one keyword has a 56 cent Earnings Per Click (EPC) and another had a $1.22 EPC, this is important knowledge. Adjusting your bids to an appropriate level can keep you from over spending...or allow you to throttle up your overall traffic for even more success. Don't let poor keywords leak your accounts.

Too Generic of Keywords

Negative keywords may not be enough to keep you from trouble on too generic a keyword. While these generic keywords are often more highly searched and can even be among your best...they can also be riddled with bad traffic. Users who perform a search on a generic keyword may often be at a very early stage in the purchase process. Are you able to turn an effective profit on them? Once again, this is yet another reason why you need keyword-level traffic. It's especially vital on a generic keyword.

Avoiding the Dirty Work of Building Long-Tail Keywords

To follow up on the generic keyword topic, creating your long-tail keyword lists and the relevant accompanying ads may be a major time-consuming process. Do it right and you can also find it to be very profitable. The nature of keywords is that they vary from phrase to phrase. A keyword like "cell phone" can differ in results from a keyword such as "motorola cell phone", which in turn can vastly differ from a more long-tail keyword like "motorola w375 unlocked cell phone." One user is likely still doing research, while the user in the last example knows what they want ... and may be ready to make that purchase.

Not Pulling Apart Content and Search Campaigns

You can get stung by poor quality traffic or click fraud if you do not separate your content network advertising from your search network advertising. If you don't understand those above items, there is a good probability that you are not separating the two in your accounts right now ... and you are very likely losing money. A better solution is to build separate campaigns for each and ... track with precise analytics the results from each network. Again, not knowing is probably costing you now.

Not Attracting Local Clients Through Geo Targeting

Each of the major pay per click engines offer a way to tightly set up your campaigns. If you are working from a local pool of potential clients in your area, you need to take advantage of some of the area-specific targeting that the PPC engines offer. Fine tuning your campaigns to get the right people in your region to respond can be well worth the effort to your bottom line.

Not Monitoring Your Campaigns With Frequency

Alright, so maybe you do not frequently monitor your EPCs at the keyword level (you should). And, you don't conduct split tests every day your ads are up (you should). It is still surprising that there are a high number of pay per click advertisers who don't continually monitor their accounts. The big three PPC engines are cracking down on poor performing ads more than ever. Many advertisers are getting stung with the "Inactive for Search" label on their keywords. If you don't monitor your accounts, Google, Yahoo and MSN may have plucked some of your keywords off their networks. And, with that, some of your profits.

Making mistakes like the Terrible 10 of PPC Advertising are common, but correcting them can have a huge impact on your bottom line. If you can manage your pay per click ads at a high level or if you can hire them out to a professional pay per click management company...the results for your increased precision and effort will pay off.