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While it is easy to get started in pay per click advertising, it’s even easier to make very costly mistakes. Building a pay per click campaign the correct way means paying attention to detail and continual oversight and management. I’ve compiled a list of 10 typical mistakes that are found in PPC advertising campaigns.

Too Many Keywords Per Ad Group

It’s important to target your ad to be as relevant as possible. Don’t group all your keywords into one or two ad groups. Break them out. Keep them tight. This gives you more control over ad variables so that you can be as relevant as possible.

Not Using Negative Keywords

Negative keywords reduce unwanted impressions, and more importantly, unwanted click throughs. However, with increasing priority given to “quality scores” and click through rates in the PPC engines, it’s key to trim the fat from your keyword campaigns. If your company sells “widget management software” then be sure that you have keywords like “-serial” or “-free” assigned as negative keywords (unless, of course, you offer it for free in some manner). You can find good negative keywords in your log files or when you build your lists.

Not Doing Enough Testing

Split-testing your ads is critical. Even the smallest of changes can boost results. In addition to testing your ad copy’s “call to action” or value statements, every ad has multiple variables to test. The titles, the two lines of copy, and display url all can be optimized. If you don’t have time for hands-on testing, a good professional pay per click management company can run daily split testing for you. You’d be surprised how well this can pay off.

Poor or Non-Existent Tracking

It’s not enough to know that you spend $6,000 dollars a month and get back $12,000 in profit. Your bottom-line numbers need to be precise. The PPC engines will give your click through rates, but you need to know your ROI or costs per action in detail. Tracking results can help you to spend only $5,000 a month to get you that same $12,000 in profit.

Not Tracking Results to the Keyword Level

Setting up good analytics yourself or hiring a professional pay per click management company can do the job. Not only do you get more bang for your buck by getting rid of poor performers, but getting tracking to the keyword-level makes all of your testing and work even more precise. You need to know your earnings per click. If one keyword has a 56 cent Earnings Per Click (EPC) and another had a $1.22 EPC, this is important knowledge. Adjusting your bids to an appropriate level can keep you from over spending…or allow you to throttle up your overall traffic for even more success. Don’t let poor keywords leak your accounts.

Too Generic of Keywords

Some broad and generic keywords can certainly push a ton of traffic to your site. They may even be very successful. Often, however, they can also do just the opposite — drain your funds with poor results. A user searching on one of these generic phrases is often doing research in an early part of the buying process. Knowing your keyword-level results and filtering out bad variations with negative keywords can help you get a true read on these generic keywords.

Ignoring the Many Long-Tail Keywords

This follows the above item on generic keywords. Building a list and individual ads for the long-tail keywords can be a major time-sucker. It can also be profitable if the task is performed correctly. Those earnings per click will likely vary widely from a generic keyword like “mp3 player,” “sony mp3 player” and “sony 2GB S610 walkman video mp3 player.” One consumer is doing research, the other knows what they want and is most likely looking to purchase.

Not Pulling Apart Content and Search Campaigns

An easy way to get scorched on poor performing traffic or even click fraud is to not separate your search network ads from your content network ads. Chances are that if you don’t know what the difference is, then they are likely not separated in your account — and bad keywords are leaking your funds daily. You are better off to build different campaigns for your keywords on the content and search networks.

Not Geo-Targeting a Local Business

Local businesses that attract clients from their region must take advantage of the geo-targeting that each of the major PPC engines offer. Bringing that local clientele to your front door on non-local keywords can increase profits greatly.

Not Frequently Monitoring Your Accounts

Alright, so maybe you do not frequently monitor your EPCs at the keyword level (you should). And, you don’t conduct split tests every day your ads are up (you should). It is still surprising that there are a high number of pay per click advertisers who don’t continually monitor their accounts. The big three PPC engines are cracking down on poor performing ads more than ever. Many advertisers are getting stung with the “Inactive for Search” label on their keywords. If you don’t monitor your accounts, Google, Yahoo and MSN may have plucked some of your keywords off their networks. And, with that, some of your profits.

The Terrible 10 of Pay Per Click Advertising is a lot to consider, but it’s vital for healthy pay per click campaigns. Whether you can actively manage your PPC accounts at this level or you need to hire a pay per click management company to do it, vigilance and precision can make a huge impact on your bottom line.

Google Adwords

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