Sorry if this has been posted already. I didn´t see it already mentioned. http://news.yahoo.com/news?tmpl=story&u=/nm/20050808/wr_nm/tech_google_dc_1
I never really got the concept of an ad budget. If its profitable, why limit how many clicks you receive?
Well for one not every ad compaign is profitable, and the only way to find out is by testing it. Also some ad campaigns will not pay off right away. I have an ad campaign with a low budget because conversions on my site does not equal instant money. Down the road if people keep coming back my inital advertising dollars pay off.
Most companies work with budgets. Sometimes it's about branding too...not always about coverting X # of sales per click.
I have a client who uses adwords. Initially the suggested daily budget was €8. He tells me now it somewhere near €80. That´s an incredible increase in less than a year. Like JoeO, his conversions do not equal instant money. He is finding it hard to justify this ever-increasing ad-spend.
I dont get it. Why is he spending more if he's not making more? Are you saying the terms being bid on are getting more expensive due to being more competitive?
I must not be a good marketer. If an adwords ad isn't profitable within 72 hours, I dust it. I can't see getting clicks and not making sales from them. I keep wanting to look into this whole branding concept, but it seems like an expensive endeavour with very little short term pay off.
Branding is a long term stratagy. It's not for every one or every site. Good example of branding done right - Google.
Just something interesting I thought to share with you. http://www.google.ca/search?hl=en&safe=off&q=%22CLRB+HANSON+INDUSTRIES+LLC%22&btnG=Search&meta= Some websites/listings of the company sueing google!
Maybe what your missing is that not everyone is selling something. I have sites that have ads on them. If someone finds my site through my adword ad and like it and come back, there is more of a chance for them to click more ads. Plus if they tell a friend thats more traffic = more money down the road. I have a site where my number one seach time is the name of the site (which is a unique name). And I think getting search traffic from people searching specifically for your name is a sign of good word of mouth advertising. I attribute this mainly to my adwords campaign, as it has been my main source of new traffic since the site launched. But I still can justify having no cap on my adwords compaign simply because of the time it takes to see the ROI.