If you’re not happy with your paid search ranking, don’t automatically raise your bid. Any of these three steps may improve your results without increasing your budget:
Test New Ads. By continually split testing one ad vs. another, you’ll learn which combination of elements produces the best response. For fastest results, be sure to change your settings to “show ads more evenly.”
Test Landing Pages. Perhaps the largest factor in your conversion rate is how well your landing page matches your visitor’s interests. What many people don’t realize is that your landing page can also affect your paid search ranking. If most people leave your site within the first couple seconds of arriving, you’ll be penalized for being irrelevant, and your ranking will drop accordingly.
Test Different Match Types. The match type you specify determines the rules for when your ad will show. For instance, Google AdWords’ default match type is Broad Match – your ad will show any time the keywords are included in a search, in any order, possibly with other words in between. It works well for Google, but is not necessarily the best choice for you. Learn about Phrase Match, Exact Match and Negative Match and experiment to see which produces the best results on the lowest budget.