PPC (Pay Per Click) advertising can be a very effective advertising tool, but it can also be a very expensive lesson when handled incorrectly. Pay Per Click campaigns should be properly implemented and tracked daily in order to generate the best results.

Usually we’re a fan of testing and making mistakes that help us learn and move toward discovery of how we can optimize campaigns to increase ROI. However, you should avoid these common mistakes to ensure that you get the best ROI on your PPC investment.

Make mistakes. Just not these ones.

1. Not Filtering by City/Region/Country

Simply put, countries that produce the most clicks are not the countries that produce the most sales. Read that again. Keep in mind that “click fraud” tends to be very high in some countries, and filtering these countries will help keep costs down for the more effective clicks.

Identifying which countries have high click volume and little to no conversions should be a part of your daily maintenance when running any online ad. Another alternative is to setup a separate campaign with a lower cost-per-click value for those countries with lower ROI (Return On Investment) or ROAS (Return On Ad Spend).

2. Not Differentiating Between Search Sites and Content Sites

You need to understand the difference between search networks and content networks that run display ads. Assuming that the conversion rate will be the same in both types of networks is a big and costly mistake. In many cases, content sites will convert into sales at a much lower rate than the search networks. Best practice would be to set up separate campaigns to target search sites and content sites individually.

3. Not Tracking Your Paid Ads

Tracking is critical for determining your ROI and what keywords are resulting in actual sales. What you track is just as important as the tracking itself. The overall number of click-throughs is indeed interesting, but it does not help determine which keywords and phrases are actually earning the most money. Most importantly, that your tracking is setup correctly and not duplicating results or inconsistent. All advertising platforms will offer a way to track conversions and it’s easy to setup!

4. Not Testing Different Ads, Traffic Sources, or Ad Budgets

Testing is critical in determining the performance of an ad campaign. Rotate ads to show them evenly, and then determine which advertisements are the most effective in reaching potential customers that ultimately end up actually purchasing. Simply pause the ads with a low CTR so that more of the budget will be spent on the ads that create traffic.

5. Not Using Specific Key Phrases

It is a common mistake to use keywords that are too generic and broad. They may generate a lot of traffic, but generic terms are seldom targeted enough to result in actual conversions.

6. Not Establishing Separate Ad Sets

It is important to establish separate ad sets. This way, you can control landing pages and target specific groups of keywords with both the ad and the landing page.

7. Not Understanding Matching Options

Be sure that you completely understand all the matching options, so that you can target and filter out traffic that is unrelated to your website or product. Not understanding the matching options will often result in costly traffic that has no real interest in actually purchasing your products and/or services.

8. Not Setting Up Different Campaigns

It is important to setup and group your campaigns in a way that makes sense to you, but anyone else that is involved in optimization of your campaigns. The planning will help with your overall management.

9. Not Using Negative Keywords

Use “negative” keywords and “long-tail” search phrases to capture very targeted traffic. If you do not use negative keywords you will be unable to filter out traffic that has no real interest in purchasing. This is also particularly helpful when you are dealing with keyword terms that have multiple meanings — you can use negative keywords to minimize any confusion.

Managing a Pay-Per-Click ad campaigns can be very overwhelming and costly if not done correctly.

If you are struggling with your PPC campaign and do not have the time or energy to bring yourself up to speed on the topic, you might want to consider working with a professional and respected company like ROI JUNKIES to manage your Pay Per Click ad campaigns for you.