Is it just me... or does google have a glitch in their reccommended budget. Here is what I mean $5.00 Max CPC $8,490.00 daily budget I dunno, seems kinda iffy to me. Sorry to waist your time, I just thought it was funny enough to put on here
they look at the click potential of the keyword, and recommended how much money you need in order to capture all the clicks possible in a day. For example, if the keyword is search 1000 times a day, they would recommend a budget to try and get all the 1000 clicks. Hence the insane daily budget recommendation.
There ARE people who use it. There are RICHIE RICH and friends who just want to make more money and have money to burn. Remember that they will probably get an even bigger profit on spending this much money. Thomas
I'm sure people set their own budgets as they roughly know how much they want to spend on a daily, monthly, or yearly basis. All smart entrepreneurs plan for these things and have a ROI in their mind. So i think fender963 is probably correct in saying Google is trying to make more money. And in the original post of $8,490.00 daily budget, I think only big spenders like ebay can do that.
The recommended budget is just some useful information. Dont like it? Dont use it! Google uses a CTR of ~2% when it calculates the recommended budget. If your budget is set below the recommended budget, your ads may not receive all possible impressions. Are you targeting higly searched keywords? Your recommendation will of course be very high. Want maximum exposure for your ads? Set your budget to _at least_ the recommended ammount. Got a very high CTR? The recommended budget will probably not be enough.