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One reason a lot of advertisers on Google Adwords may not be efficient, is due to lack of knowledge of the different options available when setting up a campaign in Adwords. You might be familiar with basic features, like the keyword tool but are you aware of the more advanced features

Here’s a list of several of the most important options that can affect your campaign that you may not be aware of. Every one of them determines how often your ad is shown and by whom, therefore they have a major effect on how much money you spend on clicks.

1. Manual bidding - This feature was formerly known as set maximum limits. This is the most common way an Adwords management account is set up. What this does is allow you to decide the maximum amount you are willing to pay for any keyword in your campaign.

2. Conversion Optimizer - If you are using Google conversion tracking code to track your leads or sales, this feature is available to you, if you have enough traffic and sales. You decide how much you’re willing to pay for an “action” and Adwords automatically bumps your bids up and down to optimize the performance on a keyword level.

3. Budget Optimizer - using this feature, you can tell Adwords how much money you want to spend each month, and then you can let your account sit. Adwords will then automatically manage your account to generate the most possible clicks, within budget.

4. Preferred cost bidding - this allows you to set what the average price you’ll end up paying per click. Google ad words will then adjust your bids to ensure that the average price you pay across the entire campaign is near the amount that you plug in. This doesn’t mean that all of your bids are going to be the average amount or less, it’s a true average. Half the bid amounts will exceed your average and half will be less than your average.

If you are looking to maximize profitability from your Google Adwords campaigns, the best option to select is the manual bidding option. One thing you have to remember is that not all keywords are worth the same.

So, you’ll want to manually adjust bidding on all of your major keywords and keep close track of which keywords are making money and which ones are costing you money. Manual bidding is the only option allows you to do this.

Using the Budget Optimizer is probably the biggest waste of money out of all the options above. It’s the “lazy way” to do Adwords and you will pay for this laziness through the nose. You simply select a monthly budget and let Google do the rest. That said, there’s no way to verify that Adwords is being efficient with your budget.

Conversion optimizer and preferred cost bidding have their place if you know what you need to pay to stay profitable and you don’t care whether you are maximizing profitability as long as you generate sales at the cost required.

These are four of the advanced options in Google Adwords that are mostly unknown. Use them wisely and maximize your profitability and ROI!