It’s not rocket science and anyone can do it. It just requires a little effort to make your campaign a real success.
If you are new to Google adwords then look into the info-graphic below to see how Google adwords auction works.
From the infographic you can infer that AD Rank is the most important factor while calculating the actual CPC of a keyword. If you have higher ad rank you will spend the least amount on a keyword than your competition. To improve AD rank you need to work on Quality score of your keywords.
Quality score is basically nothing but how relevant your ad is to the user. It depends upon the keywords you have selected, how good is your ad copy and finally landing page. If all these things are relevant your keywords will definitely have good quality score.
But even after knowing all these things we don’t get the desired results. One reason can be not experimenting and exploring the opportunities. We are either spending over or under than it’s required.
If you are not sure about how much to spend on your adwords then you can simply follow 2 things. Either start with the least amount or touch the peak. Both these strategies will allow you to reach a balanced point.
If your budget is limited then always start with the first approach so that you can utilize your amount in best possible manner. Start with the least and see your standings in terms of ranking. Start pushing your budget higher and track the changes.
If budget is not an issue than place higher bids to beat the competition and keep lowering your bids to see how your ads are performing.
By following these 2 strategies you will touch a point where your adwords account is well balanced and optimized in terms of spending. But remember one thing this will not happen in a day and it requires constant efforts and experiments to reach this level.