Newbie,
I'm new to the forum but been around PPC for a long time.

One of the mistakes with PPC is that they have the wrong mentality. They want tons of clicks/traffic/visitors. That will become costly very quickly.

Really focus in on your ad. You basically want it to say, "If you want to buy a home in the St. Louis area and need help from an expert REALTOR, click here. Otherwise, don't bother clicking this ad."

Having that mindset can help you design an ad that will be tightly targeted.

Also, your point #2 above is a good one. Use free reports like "The Insider's Secrets To St. Louis Real Estate." Or "The St. Louis Housing Guide - How To Get The Same Home For Less Money."

Something catchy and intriguing that will get people to sign up and give you an email address. That proactive approach will get you exponentially more leads than just HOPING they sign up for your drip.