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4) Include in text of your Ad Keyword choosen in 3) This (key)word will be printed highlighted and will lead to a higher CTR (Click Thru Rate), lowering your costs.
5) Include in text of your Ad a line for Benefit of your Product, i.e. Discount, short term opportunity. Explain in few words why customer should click your Ad.
6) Mention explicitely price of your product or service. This will prevent freebies seekers to click on your Ad and generate costs and no sales.
7) Create at least 20 different Ad versions per Keyword Group. Monitor CTR of each ad and finally delete all versions with low CTR, keeping most successful Ad versions. Experts create usually hundred of variations. Experiment, test, evaluate, change and keep only best results.
8) Exclude "content search" option to reach highly targeted traffic. Only in case you have an amazing conversion rate, activate this option to maximize your profits.
9) Calculate value per visitor on a regular basis. Just divide achieved earnings in a given period (i.e. weekly) thru clicks in same period. This is your maxium CPC (Cost per Click). Adjust your maximum bid accordingly. Try to maximize profits, not just to lower CPC.
10) Track your ads carefully. Google provides a tracking facility you can ad in your "thank you" page after each sale. Monitor closely which keywords convert and which not. Delete Keywords which obviously do not convert.
If you monitor your Ads on a regular basis and take care of topics mentioned here, you may have a great benefit also from new system used by Google. Try to differentiate yourself with high quality and content from your competition and enjoy your profits!
------------------------------------------------------------------------------ Alex Timaios is an international Internet Marketer based in Germany. He is the publisher of the the Ezine "Marketing Tips that Empower Success" http://www.101homebiz.com/MarketingTips ------------------------------------------------------------------------------