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mydogisthebest
4th November 2008, 20:19
I have just set up a Google ads campaign, and would like to know that if I set my daily budget at £5.00 is that the amount that Google will charge me for every day, or do I get charged just if I use say up to £2.00 worth of clicks and not the £5.00 capping limit that is set? anyone please advise as I don't want a whopping bill every month. Thanks in advance. :|

KidsBeeHappy
4th November 2008, 20:20
Google will use up every single penny of your daily budget.
Everyday.

Scott19
4th November 2008, 20:23
Google Adwords will utilise the full amount, 5.00 GBP.

mydogisthebest
4th November 2008, 20:43
Google Adwords will utilise the full amount, 5.00 GBP.

Hi, thanks for that (and Boxby), but surely the statistics on Google webtools for this campaign will show the amount of clicks I got for that day? I perhaps am a little naive at this, perhaps (if I am hearing you right)Google inflate the click impressions to match your capped limit?

Steve2507
4th November 2008, 20:49
Google will use up every single penny of your daily budget.
Everyday.
Google Adwords will utilise the full amount, 5.00 GBP.
Sorry, both wrong.

Google will charge you based on the number of clicks, upto the £5 you have given as a daily max.

So if you a charged at 10p a click and you have 20 clicks you will be charged £2.00. If you have 50 clicks you will be charged the full £5.00.

If you have enough clicks to use up your £5.00 then once that limit is reached your ads will be stopped for the rest of the day.

If you were automatically charged your daily limit each day we would be paying £500 per day (we're not).

philipjohn
4th November 2008, 21:07
Sorry, all three are wrong.

Google may charge you more than £5 per day. However, over the whole month you will never be charged more than the equivalent of £5 per day.

This is because you could loose out on traffic by strictly limited ads to only spend your daily budget. Imagine that each click was 10p and you had this many clicks available:

Mon: 41
Tue: 53
Wed: 67
Thu: 62
Fri: 43
Sat: 32
Sun: 25

Total clicks for one week: 323
Total cost for the week: £32.30 (£2.70 below total weekly budget)

If your daily budget was strictly limited to £5/day as the previous post suggest your clicks for that week would be like so:

Mon: 41
Tue: 50
Wed: 50
Thu: 50
Fri: 43
Sat: 32
Sun: 25

Total clicks for one week: 291
Total cost for the week: £29.10 (£5.90 below total weekly budget)

As you can see, if Google did strictly limit the daily budget you'd miss out on 32 clicks over the course of a week.

Instead, Google recognises that volume can fluctuate (and the example above is common) and so it regulates your spend accordingly, making sure to never charge you more than your daily budget for the month (for November this would be £150).

mydogisthebest
4th November 2008, 21:16
Sorry, all three are wrong.

Google may charge you more than £5 per day. However, over the whole month you will never be charged more than the equivalent of £5 per day.

This is because you could loose out on traffic by strictly limited ads to only spend your daily budget. Imagine that each click was 10p and you had this many clicks available:

Mon: 41
Tue: 53
Wed: 67
Thu: 62
Fri: 43
Sat: 32
Sun: 25

Total clicks for one week: 323
Total cost for the week: £32.30 (£2.70 below total weekly budget)

If your daily budget was strictly limited to £5/day as the previous post suggest your clicks for that week would be like so:

Mon: 41
Tue: 50
Wed: 50
Thu: 50
Fri: 43
Sat: 32
Sun: 25

Total clicks for one week: 291
Total cost for the week: £29.10 (£5.90 below total weekly budget)

As you can see, if Google did strictly limit the daily budget you'd miss out on 32 clicks over the course of a week.

Instead, Google recognises that volume can fluctuate (and the example above is common) and so it regulates your spend accordingly, making sure to never charge you more than your daily budget for the month (for November this would be £150).

Thank you, interesting info, Google said that one of my keywords that I have chosen will not be a page one rank and that I should up the ppc to 30p (as I had it at 10p) do you think I should up it or is this just their way of more revenue, thanks in advance.

philipjohn
4th November 2008, 21:40
Well, what they're saying is that at 10p your ad won't appear on the first page. Very few searchers will even look at the second page so it's unlikely your ad will ever be seen let alone clicked on.

AdWords includes a traffic estimator tool, which you can use to figure out the ideal bid to set for each keyword. While you're in an ad group, click on the "Edit Keywords" link. You will be taken to a page with a box showing all your keywords in that ad group and there will be a button labelled "Estimate Search Traffic". Hit that button and you will be shown click estimates based on your bids. You can then adjust your bids and update the estimates to see how much you'll need to spend to get the desired number of clicks.

who_me
4th November 2008, 21:47
Much of PPC management is less about getting clicks and more about achieving goals. Looking at the results of the click throughs you can calculate the ROI.

Google will suggest an amount, but experiment… if you have the time, increase it gradually over time and review it.

Based on your £5 per day budget consider if this one term was your only term and you increased it to 30p you would be able to have 16 clicks a day (hypothetically)

But if you were to put it to say 15p a click and had a slightly poorer position but still got traffic then your budget would get you 33 clicks a day (hypothetically)

If the value of those clicks are the same (i.e. they convert the same) then paying less will get you more, so the only thing to do is make changes and then review.

First in Retail
4th November 2008, 21:54
The ONLY way to do this is make sure your keywords are EXACT and expand from there, yes its a load of work, but that way you are in full control.

To get exact use [ keyword] make a list of key words and phrases and put them in specific campaigns, so if you are selling tshirts and jeans you need to have 2 campaings, one for tshirts one for jeans, the "copy" in the ads need to be HIGHLY RELEVANT to the keywords, there is little point talking about tshirts in your ad for a keyowrd such as jeans.

Adwords is an absolute doddle once you have the basics nailed, if your not sure about something then STOP you will be throwing cash away.

Another tip is DO NOT click on other adveritsers ads thinking this will spend there money, all it will do is icrease there CTR and push them up the list.

Remember its not about who pays the most gets at the top, its all about CTR the higher the CTR the better Google think you are.

First in Retail
4th November 2008, 21:55
TIP:

Switch OFF the content network until you are sure of what your doing, content network can be a good source of customers, but in the learning curve your better off without them till you find your feet.

First in Retail
4th November 2008, 21:57
Tip:

Forget negative keywords, by the time you have made that list you would have been be able to use the EXACT match much more effectivly

Scott19
4th November 2008, 23:55
Google will most likely utilise the 5.00 GBP budget, rarely will the full amount not be used (especially for such a nominal daily amount) - it can however be more than the daily budget, as you can see from their website.

"We might exceed your daily budget when we determine that your ad can benefit from more exposure on particularly heavy traffic days. However, our system makes sure that in a given billing period, you are never charged more than the number of days in that month multiplied by your daily budget"

Of course, if your budget is much more, such as 500.00 GBP then there are a lot more clicks needed, and depending on how specialised/niched your targets are - then of course you may not use the whole daily allocated budget.

First in Retail
5th November 2008, 08:55
Google will most likely utilise the 5.00 GBP budget, rarely will the full amount not be used (especially for such a nominal daily amount) - it can however be more than the daily budget, as you can see from their website.

"We might exceed your daily budget when we determine that your ad can benefit from more exposure on particularly heavy traffic days. However, our system makes sure that in a given billing period, you are never charged more than the number of days in that month multiplied by your daily budget"

Of course, if your budget is much more, such as 500.00 GBP then there are a lot more clicks needed, and depending on how specialised/niched your targets are - then of course you may not use the whole daily allocated budget.



Remember, Google does not "use" anything, your campaigns will use cash depending on how they are set up, if you have a keyword for example "big red chicken with no head or ears" then you will not use your £5.00

Its all relative to your keywords, I understand that in most cases £5.00 will be used, but the budget in any case in based on a month as well, so spending £2 on monday will mean you could spend £8 on Tue

Google Adwords is very easy to get wrong, I would only listen to Google Adwords Professionals, or ex professionals who saw no need to retest (like us) :)