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Why use phrases?
 

Aspkin, you suggested using phrases such as "buy this widget". why?

Because if you use broad.. you keywords will show up for other things then what you want. If you use phrase matching.. you ads will only be shown for that exact phrase. Read below. Also.. this will increase you CTR which will lower your ppc cost. So instead of it costing $.50 cents per click it'll cost ... $.20

Trust me..

keyword = broad match
[keyword] = exact match
"keyword" = phrase match
-keyword = negative match

Broad Match - This is the default option. If your ad group contained the keyword tennis shoes, your ad would be eligible to appear when a user's search query contained tennis and shoes, in any order, and possibly along with other terms. Your ads could also show for singular/plural forms, synonyms, and other relevant variations. For example, you ad might show on tennis shoe or tennis sneakers. Run a Search Query Performance Report to see what keyword variations trigger your ad.

Phrase Match - If you enter your keyword in quotation marks, as in "tennis shoes," your ad would be eligible to appear when a user searches on the phrase tennis shoes, in this order, and possibly with other terms before or after the phrase. For example, your ad could appear for the query red tennis shoes but not for shoes for tennis, tennis shoe, or tennis sneakers. Phrase match is more targeted than broad match, but more flexible than exact match.

Exact Match - If you surround your keywords in brackets - such as [tennis shoes] - your ad would be eligible to appear when a user searches for the specific phrase tennis shoes, in this order, and without any other terms in the query. For example, your ad wouldn't show for the query red tennis shoes or tennis shoe. Exact match is the most targeted option. Although you won't receive as many impressions with exact match, you'll likely enjoy the most targeted clicks - users searching for your exact keyword typically want precisely what your business has to offer.

yep aspkin is right,
the more direct your phrase is the more targeted it will be and the less money you will waste on people just randomly clicking.

for example for one of my sites,i refer people to businesses (not going to go into too much detail)

for the adwords i had:

"city business quote"
"get estimate business"
"get price on business"

of course business and city are replaced by whatever it is im promoting.
of course if you have a world wide site, then you wont need the city, but still put a lot of detail in the phrase.

I understand. How many key words should i have? How much should i spend on bidding for them? 100$ a day sounds steep to me because i havent sold anything yet.


Also, to make a sub domain. its

subdomain.domain.com right? well im trying to redirect them to my main website.

So i have it set up like so:
subdomain.domain.com ----> domain.com/
But when i type in thta subdomain it takes me to my index page, my parent directory.

Baby steps in the beginning. Use around 30 targeted keywords per ad group. Limit your budget to $40-$50 at first to get the hang of it. Also disable content traffic.