You can observe people/companies spending money on PPC campaigns without getting tangible benefits. This can be solved by correcting the small mistakes in the campaigns.
Mistake # 1:
There is no use of spending money on visitors who simply click the site without bothering to convert to potential customers. The visitors will get their payment for clicking but the company loses money without any benefit. Conversion rate must be calculated to see the return of investment. All the search engines have conversion tracking installed which gives an idea of the actual conversions to sales with respect to total number of clicks.
Mistake # 2:
The most common mistake is to have keywords that are not broadly matched with the search engines. This causes less number of clicks and visitors. The keyword must be framed to match the parameters set by the search engine for optimum results.
Mistake # 3:
There is a general consensus that negative keywords must never be used. This is a fallacy and many of the successful campaigns have come out with negative keywords. Negative keywords are most likely to stir up the thoughts and instinctive reactions are observed. They certainly help the site and the product to ratchet up sales.
Mistake # 4:
PPC campaigns throughout the day deliver less return. It should be analyzed critically at what time of the day is the conversion rate best. The best time must be selected to splash the ads for great return of investment.
Mistake # 5:
The first slotted ads might not bring best results and will also cost a fortune. Ideally the third or fourth placed ads in the page will get optimal results.