Google Adwords - Common Mistakes

Sometimes I come upon clients that have set-up their own Adwords Account .... and no it's not working well for them. 100% of the time I can see faults with the set-up but also their lack of management is to blame for not making Adwords work for them.
In this post I'm going to talk about some common mistakes that people make when creating their own Account. Some of you may feel that this is pretty basic stuff ... yet I see these mistakes made over & over again so I think it's important that I mention them. For now.... here are the top 5:
Ecommerce Marketing
1. First let's look at the settings of your campaign .... If you want to target your customers while they are looking for your products/services then you need search advertising. Under Networks, make sure you set your  preferences to Google Search & Search Partners Only! Un-tick the box next to Display Advertising. This is a completely different campaign and will not be effective for you unless you have professionally produced banner ads & are capable of choosing the correct placements yourself. .....I know....sounds obvious! .....but many people forget to un-tick that box.
2. Ad Rotation Settings : Set this to "Show ads more evenly" and then keep an eye on your Ads. Monitor the CTR & Conversion Rate for the next 2 weeks! This will allow you to figure out which Ads are effective & which are not. You should have at least 5 Adverts to start with. Once you've seen the results, you should then update your ads accordingly. Most people like to set this option to "optimize for clicks/conversions" however I recommend you do this manually in the 1st couple of months - and then once you have your perfect ads you can change it.
3. Take advantage of all the free tools that Google offers. For example: Conversion Tracking & Analytics. I cannot stress enough how important it is to have both these codes on your website! Without them - how else would you know how well your campaign is working for you ?  How would you know which keywords are working & which are not ? If you're running Adwords without these codes then you're throwing away good money on clicks without a clue as to how well this money is working for you.
4. Campaigns - Google Allows up to 500 Campaigns for a reason.... you need them! The limit used to be 25 when I first started out and I did find myself hoping that they would 1 day increase this. Most people, when creating their own Account, set-up 1 campaign, 1 Adgroup, 1 Advert and multiple keywords. BIG MISTAKE! You should set-up a campaign/or adgroup for each of your different products or services. This way you can dedicate a unique Advert to each product that appeals to your customers. You can give each campaign relevant keywords that are associated to this product specifically & you can dedicate a unique budget to each product which allows you to monitor your ROI for each one.
5. Keywords - start with "Phrase" or [Exact] match. Why ? This instantly increases your Ad Quality Score! Yes each keyword has an Ad Quality Score out of 10. The higher the score - the less you have to pay per click to stay in the top ranks. This score is primarily based on your Click Through Rate. The higher this is then the better the score is. In order to increase your CTR - you should use more specific & relevant keywords - hence you should use "Phrase" or [Exact] match.
What you don't know...... is that once per month Google assigns an Account Quality Score to your Account. This is usually your average score based on all your keywords' scores. This score is assigned to the URL of a website & so if you find yourself with a poorly-managed Account & decide to start over - it won't be easy! Google will remember the URL and assign you the same Account Quality Score. This automatically puts your keywords at a low score & you will have to bid high if you want to compete for the top 3 ranks.