The Campaign Buildout Prime Directive
To repeat, the safest way to start using AdWords is to use Search network only and all-exact-match keywords. These settings remove all ambiguity, so you know exactly what you're getting and how much each element is contributing to your profit or loss.
Figure 7-9 shows a hypothetical (but very common) scenario in which the exact match keyword [supplements for women over 40] generates a sale at an average of $4.25 in click costs, whereas the phrase match of the same keyword generates a single sale after an average of $12.32, or almost four times the cost. Broad match requires $22.48 per sale, whereas the Display network cost jumps to $73.32 for a text ad and $125.54 for an image ad. Mobile ads generate sales at an average of $31.22, or more than seven times the cost of exact match.
The moral of this story can be found in the last line that totals clicks and conversion, while averaging the cost/conversion. If you had set up your first campaign the way Google recommends for new users, all you would see is a total cost per conversion of $19.09, or four and a half times more expensive than exact match. That's a major reason most advertisers give up on AdWords — they think the traffic is too expensive. Some of it is — but if this advertiser ...
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