Adwords spends

Discussion in 'Google AdWords' started by alvin1972, Nov 19, 2009.

  1. #1
    Usually what is the budget that you guys put up per day for any Adwords ads? USD10 or 50? Any comments? Thanks
     
    alvin1972, Nov 19, 2009 IP
  2. Lucid Web Marketing

    Lucid Web Marketing Well-Known Member

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    #2
    DB = EI * CTR * CPC

    DB = Daily Budget
    EI = expected impressions from all keywords
    CTR = click rate. This is the rate you expect to get or proven you can get. Ad position will affect this and your bid will also affect your position
    CPC = cost per click you expect to pay at the desired position. Quality score will affect this.

    If you are not willing to set your budget that high, set it lower. You will proportionately get less clicks.
    If you are willing to set to that value, add at least 10-20% to cover increases in click rate (you will test and try to get higher CTR) and any increases in impressions.
     
    Lucid Web Marketing, Nov 19, 2009 IP
  3. Scripter

    Scripter Peon

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    #3
    Good formula, it also depends on your monthly spending limit. I usually test waters with 50-100$ a day before adjusting or increasing the budget.
     
    Scripter, Nov 20, 2009 IP
  4. Internet Marketer

    Internet Marketer Peon

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    #4
    Daily Budget depends upon how much you are willing to spend in adwords....simple terms...
     
    Internet Marketer, Nov 23, 2009 IP
  5. JHardy_WV

    JHardy_WV Peon

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    #5
    About £700 (around $1400), but it really depends on how profitable the account is - if you're achieving really good ROI then you should basically spend as much as it takes to get as much profit as possible
     
    JHardy_WV, Nov 23, 2009 IP
  6. joker2499

    joker2499 Peon

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    #6
    Depend of profit & cost per click.
    for me, i use 10 clicks * max cpc keyword = cost per day while testing.
     
    joker2499, Nov 23, 2009 IP
  7. 1advnet

    1advnet Peon

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    #7
    Here is a good rule of thumb for you. Set your testing budget twice your profits on what you ae selling. so lets say for every product you sell, you make $30 in net profit, then set your testing budget to $60. If you don't make at least one sale after spending $60, then that means the conversion is too low to be profitable.

    As for your daily budget, start your test low...around $25/day but set your cpc high. That way you get good conversions without spending too much. Then go in and start dropping your cpc.

    Greg Cesar
     
    1advnet, Nov 23, 2009 IP
  8. Panda

    Panda Greenhorn

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    #8
    Always find out what your target cost-per-acquisition is. How much you spend each day doesn't matter if you're making a profit! If your product sells at $50 and $25 of that is profit, you know you need to spend less than $25 per sale to make a profit - simples! Once you reach that CPA you can push your budget as high as you like.
     
    Panda, Nov 24, 2009 IP