There are what seem like a thousand different elements that make up an Adwords campaign. The broad elements are; budget, cost-per-click, keyword, and targeting settings. How do they influence your ad performance according to the folks at Google?
Budget: The amount you’re willing to spend on an ad campaign over a period of time
Cost-per-click: The amount you choose to pay each time your ad is clicked
Keywords: Words or phrases related to your business
Region/country targeting: The geographic area where you’d like your ads to appear
Budget
Setting a higher budget will result in more ad impressions; your ads will appear as frequently as possible for your keywords.
Cost-per-click (CPC)
Higher CPCs help your ads appear among top positions in Google search results and earn higher clickthrough rates. (Your clickthrough rate, or CTR, equals the number of clicks your ad receives divided by its number of impressions.)
Keywords
Choosing specific keywords will result in more targeted ads with higher clickthrough rates. (Your clickthrough rate, or CTR, equals the number of clicks your ad receives divided by its number of impressions.)
Region/Country Targeting
Targeting smaller regions can result in more relevant ads with higher clickthrough rates. (Your clickthrough rate, or CTR, equals the number of clicks your ad receives divided by its number of impressions.)
