I'm testing a new keyword out, it's also popular and has a high volume of searches, so I've let it run with a $10 daily budget, and have 1 convertion. Now what do i do, increase my daily budget to $100 and see if it performs the same ? would it be expected to have a consistent result based on my test.?
Logic says to me that your increase should be gradual (so going from $10 to $25 for example). This will allow you to continue your monitoring for any conversions whilst keeping costs under control.
You can not predict Adwords.Today you might earn $100 by investing just $10 but tomorrow may not be the same. This is my personal experience. So increase the daily budget day by day, not at one go. I used to spend $20-$30 a day but my earning varies, from $60 to $100.
You can judge your keyword after 300-500 clicks.Not less. If you get after let's say 400 clicks a 1.5% conversions ratio it will be consistent,but it will vary a bit. So it can drop to 1.4% or maybe 1.3% then maybe after a month increase to 1.6% but the average will be about 1.5%.
Increase your budget systematically with a eye on cpc and conversion. some time with massive increments you get less quality clicks and less conversion.
I agree with Michael, 500 clicks can give you a great idea of what's the CTR for than keyword... Maybe if you refine the keywords or the ad copy you can improve your CTR
cpc, do you just put your bid in at the max cpc that people are paying for a popular keyword and let adwords work out how much you actually pay for a top position particularly if you know it converts at a lower position.