His findings are contained in this infographic. Probably about what I would have expected, although a couple of strange ones cropped up there: cord blood? really?
So, how do small businesses compete on Google AdWords if they are operating in one of the most expensive keyword categories?
Here are Larry's suggestions:
1) Be Picky: One of the neat things in Google AdWords is they let you be very specific in choosing what keywords to show your ads for. Think about your what makes your products or services unique – and figure out exactly what is your keyword niche is, then bid on those specific 3+ word keyword phrases that are more specific to your business.
2) Be Relevant: Once you’ve identified your keyword list, break it up into smaller, more targeted lists, so that you can run different, more specific ads that call out your key differentiators for the different types of keyword searches that you’ve picked.
3) Landing Pages: The average conversion rate (the ratio of clicks to your site vs. number of leads generated) for a typical small businesses is around 2%, yet I often see companies with 20-30% conversion rates. Experimenting with different offers is super-important, for example, free estimates, free consultations, $50 off, download a free resource guide (etc.).