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Aidan
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AdWords is not usually the problem nor is the problem one of competitors clicking your ads, big G is Waay ahead on that. The problem is usually inappropriate setup and keyword use, usually combined with poor ability to convert the traffic!

I’ve had to point that out to users many times, unfortunately many folk think you can just point some Adwords visitors to a page and make money, fact is that is just a part of the process – you still need to convince those visitors that out of all the websites they have visited, yours is the best service to hand cash over to!

If you are not competing on service, price, guarantees and all the rest, with the other advertisers and showing some point of difference, you probably should not be advertising like them.