PPC Tips to optimise your spend

How can I improve my campaign performance?
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Based on our experience with managing numerous AdWords ads, we've found a number of techniques that help improve an account's performance. These techniques include:

* Fine-tune your keywords.
o Experiment with keyword matching options. Some keywords work better as exact matches, others with phrase match. Sometimes adding a negative match gets great results. Of course, there are always some words that just don't work, so delete those.
o Add plurals, synonyms, and related phrases to your keyword lists.

* Revise your ad text. Include a call-to-action - language designed to entice the customer to take an immediate action.

* Organize your ad groups by theme based on your products, services, or other categories.
o Shape your ads around your keywords.
o Try running 2 to 4 ads per ad group. We'll automatically monitor the clickthrough rate (CTR) of each ad and show the better performing ads more often than ads with lower CTRs.

* Pick the right landing page. Make sure the destination, or landing, page for your ad is a page where users can find the product or service promised in your ad.
o Keep your original objectives (sales, leads, downloads) in mind.
o Refer to specific keywords, offers, and calls to action on your landing pages.
o Make your landing page navigation as simple as possible.
o Help people get what they want in three clicks or fewer.
o Don't create obstacles that discourage easy transactions.

* Enable content bids. When you enable content bids, you can set one price when your ads run on Google and its search partner sites, and a different price when your ads run on Google Network content sites and products. Learn more in our content bids FAQ.

* Track your results. Your AdWords account will provide you with clickthrough rates and costs, but it is often useful to understand how many clicks actually convert into your customers. For this type of analysis, you can use our free conversion tracking tool. To start tracking today, simply select the 'Conversion Tracking' link at the top of the 'Campaign Summary' page in your account.

We also offer a more detailed Optimization Tips page. We suggest that you use this page for guidance when creating and refining your campaigns. However, these tips are not exhaustive, and we encourage you to experiment with your own ad text and targeting techniques to find what works best for you. You can also watch these tips in video format (English only).

This is a simple cut and paste from the Google webpage.
If you want to view the original doc click here https://adwords.google.co.uk/support/aw/bin/answer.py?answer=6141&ctx=tltp