Keywords Too Broad
If your keywords are set to broad, you will attract visitors who weren’t necessarily searching for the product/service you sell. This will waste your money as you are charged for every ad clicked. The more specific you can be with the keywords you target, the better chance to land interested visitors to your page. I am a huge fan of the modified broad match keyword type.
No Negative Keywords
One way to negate the broad keywords is to make sure you have negative keywords for your campaigns. These are words you do NOT want to show up for. One account we took over had zero negative keywords and they were paying for search terms that had nothing to do with what they did. I added 140 negative keywords (based on the search terms that Google shows yielded clicks). The next month they had the same amount of conversions for half the price.
Low-Quality Score Keywords
Google assigns each keyword with a quality score between 1 and 10 (with 10 being the best). The lower the keyword score, the higher CPC you will pay. Your entire account will also suffer from having low-quality keywords. I recommend deleting any that are a 1 or 2 and working to improve any from 3 to 5.
Inefficient Landing Pages
Someone has clicked on your ad and you have paid that CPC. Now they are on your website. Where did you take them? Are you providing the visitor with the information they need based on the search term they entered? Do you have clear calls to action (how to order, phone number, contact form, etc.)? You have someone on your website who is interested in the product/service that you sell. They sought you out. Having visitors come to your page and not know what to do next or be able to get the information they need is a waste of money.
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