What percentage of a marketing budget should be spent on AdWords?
Before you pay for advertising of any sort, calculate the value of a single visitor to your web site. Once you know what ONE visitor is worth, you’ll know the maximum amount you can afford to pay per click.
How much is too much?
Don’t spend more than you can afford! A lot of businesses make this mistake. Example: if you are spending over $1000 per month over a 1-2 month period on AdWords and you’re getting less than 2-4 sales, you may need to reconsider your advertising & marketing options.
Would certain types of business better suit larger spends? If so, what characterises such businesses?
Any business is suitable for AdWords just as long as there are people searching online for that product/keyword. The Google Keyword Tool is great to use to test keywords to see how many people are searching each month for that word/product/service. If it’s fewer than 500 people per month, AdWords might not be your best form of marketing for your business.
Within AdWords, what add-ons are worth spending money on?
Contextual targeting places your PPC listing on web sites where the content somehow relates to your ad. Obviously, this can be a great way to increase the exposure of your ad.
If you decide to try contextual targeting, be sure to monitor where your ads are being placed, because the effectiveness of contextual targeting can vary widely. Your ads may end up featured on web sites that have little to do with your advertisement and therefore attract unqualified visitors.
What types of keyword should be avoided?
I always recommend bidding on “exact match” keywords. That way you are not paying for keywords that may not be relevant. Example: “tennis racket” will match “tennis racket” but not “second hand tennis racket.”
Are negative keywords genuinely useful?
If you are not using “exact match”, than yes, negative keywords can be useful. As an example, if you are selling “tennis rackets” you don’t want your ad to appear if someone types in “free tennis rackets”. In this example you would put the word “free” in as a negative keyword.