Managing AdWords campaigns

I run a number of AdWords advertising campaigns for some businesses in the UK and overseas and I've spent most of today fine-tuning keyword bid prices in one specific campaign to optimise them for conversions. In this particular campaign, we define a conversion as someone who clicks on an ad and then goes on to complete an online form and provide their contact details.

The sector is quite small and we are focusing on one geographic area so it's taken several months to get sufficient data to be sure which keywords convert and which don't. Now that we do know I expect the number of conversions to rise because we will focus our budget on those keywords that generate enquiries. This will let us boost the bid prices for these keywords which in turn will boost the ranking on the page. There's a possibility that we will also increase our already high click through rate as our ads become more prominent and this will serve to discount our costs per click under the complex AdWords pricing model.

The whole system is based on a Vickrey auction.