Google AdWords advertising can easily waste a lot of money if you don't know what strategies to use. One highly successful strategy is to be the highest bidder so your ad is displayed above all others. You may need deep pockets to do this however you'll be the first ad visitors see and you'll receive more traffic than the competing ads below yours.

Here are the 7 steps for bidding high

1. Use the AdWords keyword tool to estimate the CPC (cost per click)

The AdWords keyword tool will show you the average cost per click of a keyword for last month. This calculation is not always correct. You'll find this out when you set up your campaign.

2. Use the estimate search traffic tool

When adding keywords to your campaign use the "estimate search traffic" tool to view the estimated cost per click. Bid higher than this to secure the top ad position.

3. Check your ad position

After setting up your campaign and running for a few hours check your ad position under your campaign settings. If the location of your ad is below position 1 you'll need to adjust the bid on your keywords. Double check your ad position by inserting your main keyword into the Google search box. Sometimes there's a discrepancy between what Google tells you and where your ad is actually displayed.

4. Edit keyword settings

To raise the bid on your keywords, select the top box at the top of your list of keywords, then click on "edit keyword settings." This will display the default bid box and the search bid boxes for all your keywords. If you want to bid the same amount for all your keywords just edit the default bid box. You can also bid on each keyword separately by editing the "search bid" box.

5. Double serving rule

Google doesn't permit multiple ads from the same or an affiliated company or person to appear on the same results page. If you have the same display URL as a competing ad your ad will not get displayed. To solve this problem simply outbid your competitor so if his ad is above yours increase your bid so your ad will get displayed above his.

6. Monitor your ads

Monitor your ads each day as there may be a competitor that tries to outbid you. You will then have to raise your bids to remain in the top position.

7. Track your keywords

By tracking your keywords you will know which one generated a sale. If you have your own landing page you can use the Google Analytics Tool.

Bidding high on your keywords to keep the top ad position is just one of the key strategies for running a profitable AdWords campaign. Keep in mind you must have a large budget and carefully monitor your ads to do this.