The keywords
 

Don't assume you know what your prospects are searching for.

Consider the problem they (you're prospects) are trying to solve. They may be searching the issues related to the problem. They may not know how to solve the problem (so they don't know what to search for). Think about keywords beyond words that describe your business. Put yourself in your prospects position. Forget your business for a second. Ask your current clients what they would search. Do your own searches and brainstorm keywords (don't depend on Google to show you the best keywords - Google is selling clicks, not results).
 

Consider broad search terms.

They cost more but the AD you write will filter out ONLY prospects concerned with the problem you want to solve.
 

Underbid

Out-of -he-gate, you don't have enough intelligence to make keyword bidding decisions. Eventually you'll want to increase the bids on keywords that are performing, delete keywords that are not performing as well and eliminate keywords that are not performing at all.
 

The Ad

Focus on ONE problem

People use Google to find an answer to a question or problem. Your ad speaks to that problem... and ONLY that problem. Your ad states the problem and the solution. You won't have much space to do anything else. The most common mistake is to create a general ad about the business services and uses a broad search approach - and then hopes for the best result. Your ad practically writes itself when you focus on the problem / solution approach.

Bad Ad Example: Plumbing Services | Solving All of Your Plumbing Needs | Call Us Now | BBB A+ Rated (clicks to home page)

Better Ad Example: Toilet Backing Up? | Clog Prevention and Clean-up Services | BBB A+ Rated (clicks to landing page about clogs and backups).
 

Analytics

Track phone calls

This may not always be possible but if you can use a forwarding phone number, I highly recommend it. We make sure our campaign results are delivering real leads (We record the calls. We then have the client listen to and rate the phone calls (as sale, lead, inquiry, other).
 

Track all interactions

Track campaign responses (track form submissions relative to the campaign). This is easily done if your landing page is unique to the ad.
 

Follow the prospect when he leaves your site or even right after his search on Google (even if he doesn't click your ad!)

I know, it sounds big-brother'ish right? You remember that search you did on Amazon the other day for Dog Joint Supplements and then all of a sudden Dog supplement ads are showing up everywhere? Get in the game. Clicks on Google campaign re-targeting average 25% of an Adwords click and appear when you are most in the head of your prospect (right after a search on Google).

Optimize response vs keyword used

Google tools within Adwords associated with "Conversion Tracking" can provide interesting data regarding what keywords are generating what responses. Keywords that generate conversions (phone calls or inquiries) are worth more and you can start increasing the bids on these terms. You can also eliminate non-performing keywords saving you un-necessary click costs. We use software in our campaigns that includes keyword identification relative to results. We delete non-performing keywords and promote conversion oriented keywords.

The Click Destination

The MOST common mistake small businesses make is sending the click to your home page. It's lazy (or at least easy). Unless your homepage solves the problem the prospect is trying to fix, your campaign results will at best break even. Often it's worse. This very typical Adwords experience has lead many businesses to shy away from Adwords and PayPerClick programs in general just because they didn't work.

Create a landing page specific to the problem

The Click Destination is by definition your campaign landing page. The landing page answers the problem that attracted your clicks in the first place. The landing page should include a clear statement of the problem and how the prospect can solve it (presumably using your business solutions). Some, if not all of the following sections should be considered for your landing page design...

1. State the problem
2. Empathize - reinforce your understanding of the problem
3. Discuss root cause
4. Discuss possible solutions
5. Discuss how your company uniquely solves the problem
6. Present a call to action (What the prospect NEEDS to do to fix the problem)
7. Reinforce a positive decision to take action - testimonials, credentials