Too often, business owners will dip their toes in the virtual waters of AdWords, only to be crushed, disappointed, out of pocket – and never to return again.

The thing is, if you don’t know what you are doing, you won’t ever have success.

You have too many competitors, and AdWords is a big complicated system that takes time to master- and is unforgiving to the newcomers.

But when you do figure it out and set things up correctly, it can be extremely lucrative. (Like a magic machine where you put a 1$ in and get $3 back)

Now I’m not saying that AdWords will work for every business- because it’s just not true.

But I am saying that it will work for most businesses, and there are two important mistakes that I want to discuss today.

These mistakes are the most common reasons why people give up on AdWords when it could have worked for them.

Not Differentiating From The Competition

On any query you are normally going to be competing with 10 other advertisers.

What have you done to make yourself stand out from everybody else?

The good news is that since everybody has hundreds (if not thousands) of keywords in their accounts, not many have spent the time to make their keyword and ad combinations stand out.

This means that you will normally find 10 ridiculously similar ads for every query.

Now, if you put the extra effort in to make your ad resonate more with users, you get the jump on the competition.

As a result, not only will you be getting more visitors to your site, but you will receive cheaper clicks as well. (The ads with the most clicks will be rewarded with a higher quality score-which means cheaper clicks.)

So to summarise:

Stand out from the competition by writing better ads > get more clicks > get cheaper clicks = Able to get more visitors & test more ads.

Targeting The Wrong Traffic

You might think it’s great that visitors are flooding through to your site from your ads, but is it the right traffic?

If I was selling red bikes, I could spend my entire budget on people searching for ‘bikes’ when I could make a killing if I just targeted people searching for ‘red bikes’.

Of course, it’s more complicated that that, but do you get the point I am trying to make?

Targeting the wrong type of traffic can be devastating, especially during the early days.

When you are first starting out, you want to begin with keywords that are laser targeted towards what you are selling. Then you can branch out and experiment further down the line once you are already turning a profit.

Also, make sure you are checking through your search query reports and countering searches that you don’t want your ads to show for using negative keywords.

And another thing – make sure you have conversion tracking set up properly. You can use the data to pause or delete keywords that are not converting enough to make it profitable.

AdWords can be a big complicated mess if you don’t know what you are doing. We train business owners and marketers to get it right the first time. Check out our free webinar here to learn more about AdWords.

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