It’s important to first understand which keywords are going to work best for your business, products and services. Brainstorm as many as you can, especially “long tail” phrases. You can read this previous blog post about finding your keywords.
Decide the Ad Subjects
If you offer marketing services one ad might be about logo design, another about building a WordPress website and a third about marketing coaching for small businesses. Each of these will have somewhat different keywords for them. Group your keywords to each ad.
Create Landing Pages for Each Ad
Yes, we’re still not even making Google AdWord ads yet. The more relevant a webspage is to your ad, the better! So now that you have groups, make sure you have a web page for each ad that matches the relevant ad keywords with its content. It doesn’t even have to be a main web page, it could be exclusively viewable only by those directly linked to it, with additional links to various other places on your website.
Open a Google AdWords Account
Visit adwords.google.com and create an AdWords account. Set up your billing information and your billing settings (Manual or Automatic withdrawal, etc)
Create a Campaign
I recommend creating a campaign for each Ad subject you picked in #2. Set how much you’re willing to pay and any other parameters (such as time or day or location of the user)
Inside each campaign create a few differently worded ads. For instance: the Marketing Coaching for Small Business campaign there might be an ad talking about Marketing Coaching, another about investing marketing dollars wisely and another about marketing training for small businesses. Each is slightly different. Apply keywords to each ad. Link each ad to the correct landing page you created. You can preview and diagnose your ads here: https://adwords.google.com/d/AdPreview/
Publish everything, make it live and watch the results. Hone what works, improve what doesn’t. Rinse and repeat!