Newbie Adword Questions

HI all,

I am a total newb when it comes to PPC. But for the last few "weeks"; that's right---weeks, I am planning to get into paid marketing and advertising thingy. I've heard few scary things about Adwords and would like to get serious help here.

So here goes:

Let's say I have a monthly Adword budget of $100 and I bid accordingly for my keywords. I've heard that sometimes Adwords charges "extremely high and differently" from the bid price I finalized.

For example: Let's say I bid for a keyword for $1/click. But I've read (somewhere in this forum I think), that there is a time when Google "can" charge more than $1; resulting in additional expense. (I don't remember the name of this term, I think it was like Adwords bomb or something when keyword prices goes higher)

So what I need to know is, as Adwords will be using my CreditCard, would I be charged above my budget of $100 in above-mentioned scenario, or would Adwords "automatically adjust" the additional keyword price within my budget of $100?

Thanks for your time and I look forward for your help.

 

If you bid a $1.00 google will take you over the 1.00 from time to time to say 1.12 or 1.15. It doesn't stop at exactly 1.00 everytime. It may even go below the 1.00. I used it for about 2 yrs and got a good bit of business, but you have to be careful that there aren't alot of bogus clicks.

 

Thanks @chiphotograhy.

But what about "exceeding my budget limit"?

I can live with if Google increases the keyword click-rate from $1 to $2 or so, but will it charge me "exceeding" my budget OR will Google automatically stop my campaign once it reaches to $100 budget?

Thanks,

 

Theres options under the adwords account that you can setup so it will not automatically charge your card. I would also recommend going on fiverr and buying a voucher. "they have $100 vouchers for $5"

 

I can see from these answers that you can be confused.

First, if you bid whatever amount, you will never pay more than that amount. It's called the maximum bid after all. That's for manual bidding. If you use automatic bidding, that's something else but you can still have a maximum bid that the system will respect.

As for the budget, it is averaged out over a period of 30 days. So you could set a budget of $25 and one day incur costs over that but other days will be lower so that it will average $25 over 30 days. It will never be a large percentage over on any given day.

Ads are never really stopped from showing once you reach your budget. It depends partly on the settings you choose but essentially, the system shows your ad as evenly as it can throughout the day. If you want to maximize your ad exposure, you have to have a high enough budget for the impressions your keywords are getting, your click rate and your CPC.

If your keywords are searched 1000 times a day and you get a 5% CTR at a cost of $1, a budget of $10 will show your ads only about a fifth of the time. You'd need a budget of at least $50 to maximize your exposure.

 

So far the best and "accurate" response, thanks @LucidWebMarketing.

So I assume that if I set a budget of $100, Google will "never" charge me additional; no matter how high the keyword bid price goes; right?

 

Hi biztrendz,

Another thing you should take into acount with regards to your budget - charges per click will vary depending on the industry you are running the ads in. For example keywords related to the Insurance and real estate industries tend to have much higher CPCs (Cost per clicks) than the average industry where there is much less competition.

Hope this helps, good luck!

 

Budget has nothing to do with the actual click price or bids. Budget means: I have this money I want to spend but don't want to (or can't) spend more than that. How the budget is spent depends on how much each click costs. One click could cost 10 cents and another costs $1. That means you spent $1.10 of your budget.

Over the course of any 30 day period, a $100 per day budget means Google will not charge you more than $3000.

Some people think that Google will spend your whole budget no matter what. That is simply not true. If, using my previous example a few posts up, I set a budget of $75 per day and my campaign, because of available impressions my CTR and CPC means that costs are only $50, I will spend only $50 of that $75 budget. But if I budget only $25, given the circumstances, I will reach that budget each and every day. I just won't show my ads 100% of the time and so miss out on traffic and potential sales.

 

Thanks again for a detailed response @LucidWebMarketing.

So I should rest assure that if I set a monthly budget of $100, Google won't deduct $101 under any circumstance.

 

Hi

Your costs aren't 100% based on your bid. The CTR of your ads will have an impact too.

If someone bids $1 per click and their ads have a 1% CTR then Google makes $10 per 1,000 impressions.

If another bids 50 cents with a 3% CTR on their ads, Google makes $15 per 1,000 impressions.

Which ad do you think Google wants seen more?

So if you can test and tweak until you have an ad that gets a good CTR, then you can still get high in the display priority with cheaper CPC.

Mahlon

 

Nice post for me i wanna know more about PPC or adsense plz more feed here thanks a lot guys

 

Here we can think as things varies the cost also varies. You need to be more specific about costs.We just can't take it likely. It takes lots of efforts to complete this work ability.