How to select the best keywords for PPC Campaign?

[levalencia1]

I have run 2 campaigns for over a month now, I started with too many keywords, and the first ones I deleted were the ones very expensive with no conversions.

I am in a point, where I have about 15 keywords in each adgroup, and I want to optimize my cost/conversions more.

The way I see it, there are many ways to select the best keywords
1. On Cost Analsys(beta) I can select the keywords with positive ROI.

2. On Traffic Source /Paid Search, I can select ecommerce, and then order by Ecommerce conversion rate, all the ones below 2% can be eliminated.

3. On Adwords,  I could delete the ones with low CTR

What I am seeing is:

1. Some keywords with low ctr on google adwords, have positve roi and/or ecommerce conversion rate.

What process do you use to select the best of the best and delete the ones not performing well?

If I base my opinion only on 1.(Above) only ROI, then my ad groups will only have 2 or 3 keywords at most, but I think I might be losing conversions if I do it that way.

[Harbor_Compliance]

I've found the ROI calculations built in to Adwords aren't always accurate.  Generally looking for the keywords with the higher quality scores (you will have lower CTCs on these) and those with good CTRs is a good place to start.

I find that the "short tail" highly competitive keywords are less profitable than keywords that are more specific or niche.

Btw google economists have published training videos on how to set your bid prices.  Basically you look at your revenue per keyword and then backtrack to determine how much you should spend.

[Thos003]

As Mike stated, don't simply trust Google's ROI calculations. But if you are calculating your own ROI and you are turning a profit then I'd say that is your best evaluation. Even with only 2 to 3 keywords, a positive ROI means your PPC is sustainable.

And if 2 to 3 keywords work, then keep digging for others that work as well.

[Francisco_Meza]

I recommend you go though the Google Advertising Professionals course to get really good at Adwords. I took that exam years ago and it totally increased my ROI. It's free.

http://www.google.com/intl/en_au/adwords/professionals/individual.html

[fyic]

There are three areas to consider:

1. What is the conversion rate on your website

2. What is average margin per sale

Once you answer this question you should understand the target CPC you need in order to make money.

3. Lifetime value of clients

You may adjust the previous CPC to allow for repeat business.

Action List:

A) Given you already have identified keywords that are making positive ROI.  Try split testing new variations of ad copy to increase traffic - without paying more.

B) Other keywords generating sales below target ROI - look at reducing bids to hit ROI targets

C) Look at Match Search query reports for the actual terms generating sales - build these into own adgroups with tailored ad copy to increase traction

D) Add negative keywords - this should help remove unwanted / irrelevant search terms.  this will increase CTR's and improve quality scores = lower CPC

E) Check the times when conversions do & don't come through - adjusting times the campaign is running to be in line with when you get results.

F) Review device performance - consider adjusting mobile & desktop bids

[MoosaHemani]

Whenever you talk about PPC or awards it’s always about ROI and not about traffic only... so when you are going to optimize your list of keywords it should be based on ROI analysis.

I would advise you to grab the record and see when keywords have lower cpc and have a better conversion rate as compare to those which contain higher cpc but are not offering any good conversion... On basis of that you can always alter the list of final keywords that eat your less money and gives you better ROI.