If you’ve ever tried a pay-per-click and you didn’t have the experience and proper knowledge of how to run an optimal pay-per-click campaign, then you probably lost a lot of money and learned a hard lesson. In my opinion, I don’t think people should jump into pay-per-click campaigns until they have the resources to fund them and the right knowledge to guide them, but I’ll give you the top three reasons people lose money on their campaigns and how to avoid them.
The first and most important reason I have noticed is that people are not targeting their potential customers. They’re just trying to appeal to everyone when they set up these campaigns. You don’t want people who are curious about a product or people who are looking for information, you want the hungry pack of the crowd and people who are ready to make a purchase now. You should target people typing search terms that prepare them to buy something or someone looking for a solution to a product rather than someone just typing general terms for information.
Your keywords are too general and too broad. Sure, you may be attracting a lot more people to click through to your website with these keywords, but the problem is that they are very general and create a problem with the first reason, which is targeting. The longer the keyword, the more targeted to a customer the keyword is and the less it will cost per click, resulting in a ton more net profit and much less spent. Try to search for keywords that have how or how can I in the beginning because these are keywords that only people looking for solutions would type. You should start using broad keywords because it’s absolutely ridiculous to pay what you normally would for a top spot on one of the top keywords.
The last and final reason why you lose money on pay per click campaigns is the ad itself. It’s not a big secret, but some ads are so simple and boring that no one would want to click on them. If you want to get a higher click-through rate, try to stand out from the crowd and come up with a witty or clever line to attract more people.