The main objective for using a Google AdWords account is to attract more relevant traffic to your site witch in turn might lead to business transactions. If you don’t target your market correctly or you have a very niche market with lots of competition you can easily lose money with your Google AdWords campaign. There are lots of techniques out there to make your Google AdWords campaign more profitable but the most fundamental one is to define and understand your target market. You need to try and think like your potential customer and present a solution for their problems with your AdWords ad. If the user sees something that might solve his problem he is much more likely to click on it. This will in turn increase your click through rate CTR.
You will be able to define your target market by having a close look at the products and services you offer. The more narrowly you can define your target market the better you will be able to define the problems your AdWords ads should address. The better you address the users problem the more likely you will be able to attract the right clicks.
With Google AdWords advertising just like any other advertising medium it is still important to apply the fundamentals marketing principals, like for instance to defining your target market etc.