Steps.
1. Create Adgroups that have very small Keyword lists that are Laser Specific to the actual ad that you will be running.For Example, if you wanted to do a product specific campaign with something random as the Adgroup then it might look something like this:
2. Start running these ads with a high bid price. For somethingrandom it would be up close to $2 per click. This will put you in the top 3 for search results.
3. Watch your CTR (click through rate) closely once you start advertising. You should have a click through rate up around 8% or so. Now, start slowly decreasing your bid amount. You can drop it down by increments of 10-20 cents at first, until you get down close to $1 per click. Once you are at that level then start decreasing it slowly by 5 cents per click until you get down to about 75 cents a click and then start taking it down in increments of 2-3 cents per click.
4. Keep a close eye on your ad position while you are decreasing your bid amount. It should stay close to the top 5 each time. If it drops dramatically then you went down too fast.
Source : http://www.wikihow.com
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