While it is easy to get started in pay per click advertising, it’s even easier to make very costly mistakes. Building a pay per click campaign the correct way means paying attention to detail and continual oversight and management. I’ve compiled a list of 10 typical mistakes that are found in PPC advertising campaigns.

Too Many Keywords Per Ad Group

Creating relevant, targeted ads are important. Avoid placing all your keywords into a couple massive ad groups. Build them tighter. With tight ad groups you can control more of your ad customization to increase relevancy.

Not Taking Advantage of Negative Keywords

Pay per click advertising has placed more importance than ever on click through rates and quality scores. It is vital to fine tune your impressions by getting rid of the non-relevant phrases that are lowering those CTRs. If you are selling an item such as “software for widgets” then be certain you also have those negative keywords like “-free” if you don’t have a free trial version. One way to find irrelevant keywords that are costing you is to check your log files of your site.

Weak Testing

Running split tests on your ads is essential. And, no item is too small to test. Of course, you will want to work on your various call to action statements, as well as your unique value statement, but keep in mind that there are other variables. There are small, but effective tweaks that can boost results by just testing titles, each line of copy and your display url. If running continual tests is time consuming, hook up with an experience pay per click management company. A good firm can offer you daily split testing and optimize your results very effectively.

Not Precisely Tracking Results

Of course, testing your ads and fine tuning your keyword lists only works well if you are tracking results. The search engines will tell you what your click-through rates are … but you need bottom-line results. You need to know your return on investment or what your cost per action is. It’s not enough to know that you spend $5,000 and get back $10,000. You might be able to spend only $3,000 and get that same $10,000.

Not Tracking Results to the Keyword Level

Good analytics or a good pay per click management company will get your data down to the keyword level. Why pay for keywords that are not performing? That money could be better spent on keywords that are doing well or on other marketing expenses. If one keyword has an earning per click of 45 cents and another keyword has an earning per click of $1.45, you need to know. You can lower the bid on one and raise the bid on the other to drive more profits. If you aren’t doing this, you likely have under-performing keywords that are leaking your account daily.

Too Generic of Keywords

While some generic keywords can drive a lot of traffic and even be very profitable, they also can be filled with pitfalls. Negative keywords may not be enough to save you from going in the red on a generic keyword. Often, the users doing these searches are at a very early stage of the research and buying process. Again, this is another important reason to track results on a keyword basis.

Not Going After Long-Tail Keywords

This dovetails into the previous item. Building out lists and ads for long-tail keywords can be a time-consuming process, but worthwhile if done right. You are going to have different earnings per click for the keywords “dvd player,” “sony dvd player” and “sony dvd player model DVP-NS57P/B.” One consumer is doing research, while the other is likely pricing for the specific model they want and is ready to buy.

Not Monitoring Search and Content Networks Separately

An easy way to get scorched on poor performing traffic or even click fraud is to not separately track your search network ads from your content network ads. Chances are that if you don’t know what the difference is, then they are likely not separated in your account — and bad keywords are leaking your funds daily. You are better off to build different campaigns for your keywords on the content and search networks.

Failing to Geo-Target if You’re Local

If you draw most of your business from a local area, the big three PPC engines allow you to geo-target your keywords to that area. This will bring the local market to your doorstep on non-local keyword phrases. This can be hugely profitable.

Not Monitoring Your Campaigns With Frequency

Alright, so maybe you do not frequently monitor your EPCs at the keyword level (you should). And, you don’t conduct split tests every day your ads are up (you should). It is still surprising that there are a high number of pay per click advertisers who don’t continually monitor their accounts. The big three PPC engines are cracking down on poor performing ads more than ever. Many advertisers are getting stung with the “Inactive for Search” label on their keywords. If you don’t monitor your accounts, Google, Yahoo and MSN may have plucked some of your keywords off their networks. And, with that, some of your profits.

Healthy, efficient and vibrant PPC campaigns require work. The Terrible 10 of PPC Advertising that we listed above form a strong foundation for you consider when revamping or starting up your PPC advertising. Whether you hire out to a pay per click management company or can actively manage your PPC accounts at this level of detail…precision, effort and attention to detail can greatly impact your results.

Josh Prizer is a Senior Account Executive and search engine marketing consultant for Zero Company Performance Marketing, one of the top 40 pay per click companies worldwide. Visit their website to learn more about how to increase your pay per click ad results and performance.