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Currently I am spending quite a lot on Google AdWord for search campaign, I am looking at methods to save money while maintaining the clicks.

I have tried to switch from automatic pricing to manual pricing, cost is lower, but the impression and thus the clicks are also both decreased.

Are there any tricks when I switch from automatic pricing to manual? Or other tricks I can used to lower my cost?

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What KPIs do you use? I see you want the same number of "clicks" for less spend, do you track conversions or revenue? Those metrics would allow you get rid of clicks that aren't producing conversions therefore getting more revenue for less spend. Is optimization like this something you would consider or do you only want answers on clicks? – Joshak Aug 3 '12 at 17:37
up vote 3 down vote accepted

Google AdWords is almost (or can be) a full-time job and like SEO, you might do something simple/cheap which will have impressive results but something with a greater effect/expense that is not working out at all for you.

I just left a small business (+$1MM/a) that, 6 months after changing hands, is indebted and looks like they'll be ceasing operations. There is so much to learn and it can make or break your wallet just as easily as your business if you aren't very familiar with it (depending on how much control you opt for).

Without knowing your experince with AdWord, my first recmmendation is Adwords Help; Tips for Success, specifically as ageneral optimisation starting point.

Simply; Identify your target market as precisely as possible to reduce your CPC while increasing CTR and goal-completions. Also, depending on how much longer you can hang in there with the costs, experiment a little and see the effects of minor changes until you find what works for you. I'd advise not making drastic changes especially if we're talking about the main source of the bulk of your income!

Good luck!

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THanks for your valuable input. Can I say that the most effective way to optimize is by testing different ads (e.g. keywords and description), so when my quality score improve, I can reduce the cost? – Howard Aug 4 '12 at 16:51
    
Yes. The less competition for (or more targeted) your ads, the cheaper they'll be. – Alastair Aug 6 '12 at 5:25

You can not save money using Adword, Let me explain why so.

I am handling adwords for many of my clients and have provided consultant for many clients and responsible for managing team of Adword experts.

I am taking care of Adword for my own business, Bcoz I couldn't find an expert who can give better ROI.

Having so much experience in Adword, I will suggest one thing to all small & medium business that, You DO NOT depend on Adword for business find a better way to generate more traffic to your business.

Nowadays Adword is only suitable for a larger organization who can spend million of $ in Adword, Adword gives one of the worst ROI.

Assume few years back, the top bidding amount was around $10, now the same keyword top bidding amount is close to $200 ~ $300, How do you expect a small business to make profit this way ?

All the clicks from adword will not result in business, Mostly 1 out of 10 will result in business. So you acquire a customer for $2000 or $3000, Is it worth it or affordable for a small business.

Small & medium business should find a innovative way to acquire customers and connecting with local people will give better results than Adword.

Generally people like you (who starts playing with Adword or the beginners) tend to keep adjusting all the settings, like

biding type CPC bid for top position add negative bid for top page do some other experiments....

there are "really" more than 200 setting parameters are available in Adword. Its like driving a car with 200 control buttons. By the time, you learn all these settings by doing some adjustment here & there, your total budget for the year might have been exhausted without much result.

The ONLY way to get more result in Adword is by bidding higher price, Which you have to analyse whether is it worth it or not.

DO NOT believe your Internet marketing agency about what they tell on Adword, The more you spend on adword, they will earn more. Some of the Adword marketing agency charge their clients based on the amount spent, regardless of the return. So, Most of them make their living by selling Adword to you.

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