Selection of The Proper Keywords
The keywords you target (and pay for) must be specific to what you are offering on your website. If you are a retailer, make sure that people who are looking for the products you sell are funneled directly to a page where that purchase can be facilitated.
Control the Search Experience
It is one thing to get your advertisement in front of the right audience. It is quite another to make the advertisement sufficiently informative, creative or entertaining to compel potential customers to click through to your site. Likewise, just because someone ends up on your website doesn’t mean they’ll find what they’re looking for; it’s important that the ad’s destination, or landing page, is highly relevant to both the search terms and the expectations set up by the ad.
Understand the Economics Before You Start
This may sound like economics 101, but if you are planning to spend $5000 on a Pay Per Click campaign, then make sure you are generating enough revenues to justify both the financial outlay and the labor costs associated with the campaign. The good news is that you can keep your costs in line by adhering to a strict budget. If you limit your campaign to $100 a day, let's say, and your ads will stop being delivered as soon as you hit your daily maximum, and resume the next day. However, if you're spending $20 to sell a $15 shirt, it doesn't matter how many times a day it happens; you're losing money.
Use Metrics to Stay Ahead of The Curve
The terrific thing about a Pay Per Click campaign is that you can immediately monitor your results. This gives you the opportunity to do A/B testing of advertisements, keywords and landing pages. It also gives you an opportunity to quickly end poorly performing campaigns or to enhance the ones that work best for you.