What is the AdWords Daily Budget, how does it work, how much do I pay – and how much will I earn?
Every campaign is governed by it’s own Daily Budget, an amount of money you are willing to spend with Google every day the campaign runs.
There is no minimum amount, although it’s sensible to buy enough clicks per day that will stand a chance of creating a meaningful conversion event (lead, sale, enquiry, phone call, download) on your website within a reasonable timeframe.
Or it could take you ages to find out whether your website converts at an acceptable rate.
The value of the conversion is, of course, totally down to what your website is selling.
And the amount of clicks you can buy is dependent on how much each click costs.
If the average cost per click (CPC) is £1.00 and your daily budget is £10.00, you can buy up to 10 clicks (10 visitors).
When your daily budget is used up, your ads stop showing until the next calendar day, as determined by the schedule settings on your campaign.
How much you pay per day will vary – some days slightly less than your daily budget, some days slightly more.
But Google guarantee that, over a 30-day period, you will never be charged more than 30 times your daily budget.
If they overshoot, you get a credit back on your account.
So this puts you completely in control of how much you want to pay Google per month.
And why it is so important to know your numbers and make sure that what you spend comes back with friends attached.
In this game, he who knows his numbers – wins.
The formula we follow is simple: “Traffic + Conversion = Profits”
Once you get more money back than you put in, how much money are you going to put in? (Answer: “all of it”).
Then the concept of “budgets” goes away.
For most advertisers (and marketers) that’s incomprehensible.
But if you want to know more, just get in touch!