Choosing the right keywords for your Google Adwords ad is the most important part of creating a successful ad that will get clicked on. So you need to understand a little bit about what the customer is looking for and what types of words they are likely to be searching on.
A huge mistake that most new ad writers make is to target very broad keywords. This might mean that your ad is shown unnecessarily to searchers not interested in your product or service.
For an example, let’s say you are advertising for the weight loss/diet industry. This market is extremely huge with many different niches. If you were to add a keyword for word ‘diet’ then not only will you be facing tough competition and high bid prices, it is highly likely that the searcher wasn’t even looking for your product or service.
Maybe they were looking for diet cola, or even pet diet’s. If you product was for a diet pill then your ad has just been wasted since the person would not be interested and never click on your ad.
If however you had chosen the keyword ‘diet pills’ or even ‘[brand name] diet pills’ you will have a much higher click through ratio and you will also be targeting customers that are specifically looking for your product. So try and think about using highly targeted keywords as you will get a much better response and possibly more conversions.
The next step is choosing your budget or Max CPC. If you have chosen your keywords wisely then you will probably be able to get a lower cost per click than if you have highly competitive keywords.

It’s always a good idea after you have entered your keywords to take advantage of Google’s Traffic Estimator to give you an idea of how many searches, clicks and the approximate position of your ad based on the budget that you set will be. Just click the ‘Estimate Search Traffic’ to see how many clicks/traffic you are likely to get. This way you can play around with different budget and maximum cost per clicks before submitting your ad.
As you can see, choosing keywords for your Google Adwords ad is all about trying to understand what your customer would be searching for so that you can create a successful ad that gets clicks and hopefully sales.