Create the ads campaign
First, you have to research a list of keywords that your potential customers used to search for your products or services. Next, you create your ads campaign by creating the ads title, ads body and the destination link to your website. Ideally, each ads campaign should only target one keyword so that you can include the keyword in the ads title to increase click through rate.

Today, the PPC programs also allow you to determine your target market. In other words, you decide your ads to be displayed to your target country, region, city and language. For example, if you have a 'San Diego Real Estate' website, you can setup an ads campaign that target only at 'San Diego' market. In this way, you are certain to get high quality traffics to your business.

PPC Bidding
Bidding in the PPC is rather complex. But, let's start by understanding the bid price. Bid price in PPC, like auction, is very much depending on the competition for a particular keyword. The bid price could be very high for competitive keywords. $20 per click is not uncommon for some very competitive keywords. While non-competitive keywords can start as low as five cents a click. Your PPC ads placement is very much depending on how much you bid for the keyword that trigger your ads. If you are the highest bidder, your ads placement will be displayed on first position. Typically, ads on the top placement enjoy higher click through rate, but the costs is most expensive too. In contrast, low bidding will see lower Ads placement and noticeably lower click through rate.

In PPC advertising, never enter into a bidding war without knowing your position. How much you can bid will rely on the calculation of return-of-investment (ROI). For example, if you website sales conversion rate is 1% (i.e. your website converts 1 web visitor out of every 100 into a sale) and the profit per sales is $100, then the maximum price you can bid will be $1 regardless of your ads placement position. Any bid price that is more than $1 per click will lose money. Therefore, it is important to calculate your ROI in order to identify your maximum bid price you can afford.

Improve conversion rate
One of the effective way to out bid your competitors is to improve your website conversion rate. From the ROI example above, if the website conversion rate improves to 2%, then the maximum bid price is now further increased to $2 per click (a 100% improvement). Likewise, if conversion rate can be further improved to 5%, the maximum bid price you can afford now will be increased to $5 per click. As you can see, improving conversion rate is the main reason how other successful web marketers manage to pay for high bid price. Improve conversion rate not only is the key to achieve huge online profit but also the winning strategy to out bid your competitors in the PPC bidding war.

Creative Ads text
You may not afford to bid for top placement in the PPC bidding game. However, your low ranking Ads placement can still attract clicks if you can write creative text Ads. These include embedded Keywords and highlight the unique benefits of your product or service in the text Ads.

Cheaper keywords
Popular keywords are very competitive and expensive. Instead, you should spend more times to research cheaper keywords. In this way, you can obtain many low cost clicks with equally high-quality targeted traffic.

Consider less popular PPC program
Popular PPC programs from Google, Yahoo!, MSN are highly used by majority of web marketers. Consequently, it is more competitive and cutthroat to advertise on these famous few search engines. You should consider other least popular PPC program from less well-known search engines, which could generate similar good quality targeted traffic but at a much lower cost. These second tier PPC search engines are Miva, Enhance Interactive, Kanoodle, Mamma .... and etc.