Google Adwords -- How Do People Do It?

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I've been playing around with Google Adwords a bit, experimenting with a few basic campaigns to figure out how it all works. I was partly inspired by a friend of mine who drove some traffic to his retail store here in Chilliwack using a Facebook Ad campaign over Christmas. The part that I don't really understand is how Adwords is a good investment at the CPC prices they charge? For example, I was trying to target Vancouver Stock Photography using an adwords campaign. After playing around with a few keyword combinations, it quickly became obvious that the average CPC for something that targeted ...