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Dave Bockett
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I’m also pretty new to this as well but I would say how sucessful you might be with it would be heavily based on the type of business you have and the sorts of keywords you are targeting. If you have for example an online store you might find it pretty hard to compete on popular keywords that the big players would have cornered.

One of the business I am involved with is a DIY Pizza Oven kits company and we are the local agents in Canberra. As we have a small niche and very little competition on the keywords “pizza ovens” etc I have a very targeted campaign and it only appears for people in the ACT as this is our target market. Just so you can get an idea we have a limit of $100 per month which easily gets us to the top of the sponsored links section and we are currently getting around 12% click-thru rate which I think is pretty good. Even if people don’t follow the link they will hopefully see the company name and remember it next time they see us throught any other advertising we do.

Hope this helps!