What is your daily budget for Adwords?

Discussion in 'Google AdWords' started by eric56hk, Sep 9, 2008.

  1. #1
    Hello, I am wondering how much you guys will spend on adwords everyday and how much profit you will get? Because sometimes if you don't make sales it will eventually become quite expensive.
     
    eric56hk, Sep 9, 2008 IP
  2. elchenuk

    elchenuk Active Member

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    #2
    Every client is different, some are big, some are small, some sell products, some sell services, some have well known brands, some have unknown brands, for some its all about ROI, for some its all about exposure...and so on.

    Budgets are dependent on many factors you work with what you have.
     
    elchenuk, Sep 10, 2008 IP
  3. speed100

    speed100 Peon

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    #3
    No spending limit, but it goes up to $700/day on AdWords, YSM and AdCenter.
     
    speed100, Sep 10, 2008 IP
  4. CustardMite

    CustardMite Peon

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    #4
    We've got clients with profitable campaigns ranging from £5 per day up to £2000 per day.

    Can't comment on their profits, but in general, your spend should be determined by your profitability.

    If you can make £100 profit by spending £100, you should (unless you have a more profitable medium for the spend). But if you can't spend £50 profitably, you shouldn't (obviously).

    Set your bids so that your clicks are costing you less than they are worth to you, then determine your budget by identifying which bid is the most profitable (trading number of conversions against the increased cost per conversion in higher positions).

    The early stages of a PPC campaign can cost you money, as you don't know what you can afford to bid (since you don't know the conversion rate or conversion value of your traffic). But once you have this information, you can ensure that your campaign is profitable...
     
    CustardMite, Sep 10, 2008 IP
  5. eric56hk

    eric56hk Peon

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    #5
    Ya, you are right. At the testing stage, it is really quite expensive. But my sales is not really stable, sometimes 2-3 sales a day and sometimes none, that makes me difficult to estimate my budget.
     
    eric56hk, Sep 10, 2008 IP
  6. Michael T.

    Michael T. Well-Known Member

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    #6
    Don't look at it like that,some days 2 sales some days 0 sales.

    You have a conversion ratio.

    So if your conversion ratio is 1% you know that you will get 1 sale for every 100 clicks.

    It doesn't matter if one day you have 5 sales and the other none.

    Just calculate your average sales per day on a monthly basis.
     
    Michael T., Sep 10, 2008 IP
  7. eric56hk

    eric56hk Peon

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    #7
    Thanks for the tips, i will try to calculate it in this way. What conversion rate do you guys usually get?
     
    eric56hk, Sep 10, 2008 IP
  8. Michael T.

    Michael T. Well-Known Member

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    #8
    It varies a lot,but I usually get something between1%-2%

    But the conversion ratio doesn't matter if you can get a good ROI.

    So if you pay $5 for 100 clicks and get a 1% conversion ratio and make from that 1 sale let's say $30 than you are getting a $25 profit and it is good.

    But also if you have let's say a 0.1% conversion ratio and pay for 1000 clicks $100 and if you get from that one sale a $200 commission then it is also good because for every $100 invested you get $200.100$ profit.

    The conversion ratio really doesn't matter,it is just something that will show you how many sales will you get from every 100 clicks.

    You should better focus on ROI.
     
    Michael T., Sep 10, 2008 IP
  9. Vagabondette

    Vagabondette Member

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    #9
    I spend $15/day on adwords (was $10 until 2 days ago). Since I increased it I'm making $40+/day (think I'm going to break $50 today) from adsense and $8/day from an affiliate program.
     
    Vagabondette, Sep 10, 2008 IP
  10. robertpriolo

    robertpriolo Peon

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    #10

    typical profit margin is 20% for most businesses. It can be more or less but most of the average out to about 20%

    So if your spending 100k per month, you would expect to make 20k pocketed after cost of goods and marketing expenses. For affiliate marketing there is no cost of goods of course...
     
    robertpriolo, Sep 10, 2008 IP
  11. info

    info Well-Known Member

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    #11
    There are people on DP who spent from 1-1000/day on adwords. real question is keeping ROI Positive every day, and change strategy as need comes.
     
    info, Sep 11, 2008 IP
  12. hyper

    hyper Peon

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    #12
    It really depends. Untill now, 50$ per day was the most I spent.
     
    hyper, Sep 12, 2008 IP
  13. nhangen

    nhangen Peon

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    #13
    Just starting out I used a dollar a day, then I started moving up from there when I found something that worked.
     
    nhangen, Sep 13, 2008 IP
  14. PPC-Coach

    PPC-Coach Active Member

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    #14
    There are people here who spend more then $5k per day of their own money, (not clients).
     
    PPC-Coach, Sep 13, 2008 IP
  15. pipes

    pipes Prominent Member

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    #15
    I didn't know mr hyper did adwords :) was it profitable for you so far?
     
    pipes, Nov 21, 2008 IP
  16. Dan Hawkins

    Dan Hawkins Peon

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    #16
    Have a look at SpyFu!!! Spy on your competitors. This tool will tell you how much people are spending on advertising. Fro example I put Amazon in and their daily spend can be as mich as $36,000!
     
    Dan Hawkins, Nov 21, 2008 IP
  17. Dan Hawkins

    Dan Hawkins Peon

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    #17
    Have a look at SpyFu!!! Spy on your competitors. This tool will tell you how much people are spending on advertising. For example I put Amazon in and their daily spend can be as mich as $36,000!
     
    Dan Hawkins, Nov 21, 2008 IP
  18. Benji888

    Benji888 Peon

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    #18
    $25 a day, may increase soon.
     
    Benji888, Nov 21, 2008 IP
  19. DJD

    DJD Well-Known Member

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    #19
    My budget for Adwords is $5 a day, and I make about $35 in returns.
     
    DJD, Nov 22, 2008 IP
  20. mydigiz

    mydigiz Peon

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    #20
    Daily budget is depend on many factors, like if there is a new niche I like to test then I will set my daily budget as low as $10 and see it for a week are the keywords working and is this niche is for me? If I see no significant results within 2 weeks, I will try with different keywords. If this also not working after another 2 weeks, I simply just gonna change niche.
     
    mydigiz, Nov 22, 2008 IP