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These tips will help you create ads that generate higher click through rates, and lower cost per click.

1. Target The Right Audience

Target the right audience by selecting the language and countries that you want to target. For example, I exclude all countries where English is not understood by a large percentage of the population.

2. Refine Your Keywords

Use square brackets "[...]" around your keyword/s.

For example:

[google]
[google adwords]

Your ad will only show when the search is for the exact keyword phrase you have included within the brackets.

The ad will not show for searches that include other keywords. In our example, this would be for searches such as "google search," or "google news."

3. Test Multiple Ads Simultaneously

Always test 2 (or more) ads simultaneously. This is what is known in the print industry as an A/B split test. Google is offering a new program called We site Optimizer. It is a powerful tool that makes this sort of advertising easier.

Find out which one produces the higher click through ratio. Then replace the weaker performing ad with a new one.

Continue this process in your never-ending quest to get the highest click through ratio possible.

4. Track The Return-On-Investment Of Each Ad

Google tracks the click through ratio of each ad. But it doesn't track the conversion ratio.

Use a special tracking link in each ad to track its conversion ratio. For example, you could attach each ad with an affiliate tracking system link. Make sure each ad produces a return-on-investment.

5. Include Targeted Keywords In Your Ad

Include the targeted keywords in the headline and the description of the ad. Google will highlight searched keywords in bold in the ad.

When people scan search results, they look for the keywords they have entered. Searched keywords highlighted in bold certainly help to catch the user's attention. For this reason, ads with searched keywords usually perform better than ones without.

6. Sell The Benefits

Spell out one or more major benefits in your ad. For example, make more money, stay younger looking, lose weight, get healthier, live happier, etc.

7. Include Attention Grabbing Words In Your Ad

Start your headline with an attention grabbing word. For example, "Free:, New:, Sale:, etc." Make sure you stay within Google's editorial guidelines.

8. Use Words That Provoke Emotion & Enthusiasm

Use power words or call-to-action phrases that provoke emotion, enthusiasm and a response.

Here are some examples of power words:

free, cheap, sale, special offer, time limited offer, tricks, you, tips, enhance, discover, fact, learn, at last, free shipping, etc.

Here are some examples of call-to-action phrases:

* Buy Today - Save 50%
* Download Free Trial Now
* Sale Ends Tomorrow

Make sure the phrase is specific to your business, otherwise Google may reject the phrase.

9. Sell Your USP (Unique Selling Proposition)

What makes your product or service better, or different, from the competition? Spell them out in your ad.

For example, one of Amazon.com's first taglines was "Earth's Biggest Bookstore." That's a powerful USP!

10. Link To Relevant Landing Pages

If an ad is for a specific product or service, create a landing page for the ad. Include relevant and useful information to convert the customer. Generally, a well designed landing page will almost always convert more visitors than if you simply sent the visitor to the home page.

11. Remove Common Words

Remove common words, such as "a, an, in, on, it, of", etc. Remove every word that does not absolutely need to be in the ad. Make every word count.

12. Deter Freebie Hunters

Deter freebie hunters by including the price of the product or service at the end of the ad. This will improve your overall conversion ratio and lower your average customer acquisition cost.

This may reduce your click through ratio, but that's OK. After all, you're not trying to target everybody, only potential customers. In most cases, freebie hunters will never become paying customers.

Conclusion

Remember that advertising is a never-ending series of tests. Always track your ads. Never stop testing different keywords and ads to improve your conversion ratio and lower your customer acquisition cost.

Advertising in Google's AdWords Select advertising system works.