Everyday I learn something new - I read Entrepreneur dot com on a daily basis and I found this article with good information. The article is about making these top 11 mistakes, which is written by Jon Rognerud. The article goes into detail about the mistakes beginners may make when dealing with Google Adwords.
One of the tactics Jon speaks of is using all less keywords. This is true some new users to PPC marketing use way too many keywords, every keyword under the sun and its multitude of variations. This is a bad habit and can actually lose you money. If your keyword is fishing, do not add all of the fishing words and variation, target your keyword (keyword limitation). You want to limit your keyword to your product as much as possible.
Example: Fishing, what are you selling? What are you promoting? Is it bait? Is it a learning course? Specific type of fish? Target your keywords so you pay for that more targeted keyword and not the general keyword which probably has more competition. Also the more broad your keyword, the more risk of your campaign not getting a good CTR and a good conversion.
Using less keywords is very beneficial since it will garner your campaign, giving it a better chance on conversion. You want to convert all your CTR or at least try. The more keywords you have you tend to spend more money on them on a more maybe broad or more competitive keywords. New users tend to use the main most broad and most competitive keywords because it is the most searched, hoping to get noticed and clicked on. Would you rather pay less money for less competitive keywords which convert more than the high paying keywords?
When I started with PPC campaign I use a lot of keywords and lost a lot of money. This was because I was paying close to 5$ per click on a popular, broad, competitive keyword. This is when I realized that I can use keywords that are closely related and get a better chance at earning money.
When I chose keywords I use Google Keyword Tool or Adwords Keyword Analyzer. I will just go into about Google Keyword since it is free. The best thing with Adwords Keyword Analyzer is it does all the calculations for you and how competitive it is among others.
The best thing with Google Keywords is it allows you to export to excel as a CSV file. This is great because you can create custom graphs and analytics on your own, especially if you know how some of the CPA formulas work. Exporting it to excel is for your advantage.
When using Google Keywords - trying to sort it becomes cumbersome, you can not sort by 2 columns, just 1 column at a time. This does not really help you with trying to get the best targeted keywords there are. With that said I made a nice little video on how you can find targeted keywords that can help you with your PPC campaigns.
The video helps you determine your competition using the popular Microsoft Excel:[youtube]http://www.youtube.com/watch?v=GW99txUNA-s[/youtube]
Someone was IMing while in the production of this Video, don't mind the sounds
You can adjust your own numerical value of .6 to maybe .75, try not to have it to close to 1 as it will be more competitive and you will need to pay more for those specific keywords. You can even add more buy just simply copying and pasting the keywords that you generate to Google Keywords, but try not to have more than 100 - try to keep it less as possible, less keywords means more targeted buyers.