I Need Help on How to Advertise on Adwords?

I just started advertising on Adwords and am spending money on certain keywords but am having trouble tracking the effectiveness. I just don't want to be throwing money away.


You need to add Google tracking to your thank you page. Then you will know what you are spending for terms to convert.
4 Additional Answers
If you don't have Google Analytics installed (or IndexTools from Yahoo both free), then do it. This will help you figure out what happens when they land at the website. Also, be sure install the Google Conversion tracking tool (free again) to measure a sale or lead. It good to have both of these tools working before even beginning to address the question of effectiveness. After a bit of history then you can figure out what is working or not...www.sharperselling.com
Joe and Bob are right install Google Analytics & Google Conversion tracking that should give you idea of what is converting.

Are you selling directly online? or lead gathering?

If you want to take a screen shot of your keywords, I will take a quick look at it ... email bill@adwebdesigns.com

Joe, Bob, and Bill all give good advice. Much of what you track depends on your site and what you're selling. Are you trying to get a lead, make an ecommerce sale, get people to move around the site to create more published ad views? Whatever the answer, there's an analytic solution for you.

The other thing you might want to do is reach out to a professional firm. Many will do free or inexpensive account audits for you to let you know what your potential is for ROI.
If you need experts to manage your adwords account you my want to try
these guys out. http://firstpageof.com/
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