How can I increase the performance of my AdWords campaigns?

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Try geographically targeted ad campaigns. Do some research into the geographic location of your website traffic. If you discover a significant portion of the traffic coming from one region, hone in on it. Find out why this region is driving traffic to your website and take action. The closer you can associate your advertisement to your audience, the better. For example, while working on a client account, we discovered that a large portion of traffic for a particular keyword set was located in California. Would potential visitors react better to ads that spoke directly to their geographic region? To test this theory, we took the keyword set associated with California and created an ad campaign that targeted only California and used several different advertisements. Some of the ads featured California within the ads while others did not. We discovered that of the 4 different text ads, the ones that had a reference to California in them converted the highest AND cost the least per conversion!