Choosing Budget and Delivery Method

 
Choosing Budget and Delivery Method

Let’s take a look at budgeting. Up until this point in all of these tutorials, I realize that I have not yet explained exactly how the budget works with AdWords. I believe that I mentioned that you can set your budget to whatever amount you believe will work for your needs. So, if you can only afford $30 per month in advertising, that is just fine. Here is how that would work. Google would take your $30 and divide it into a per day amount. For this example let’s assume that it is a 30 day month. You are then left with $1 per day to spend. Let’s say that you have set an additional parameter that the maximum cost per click is $0.10. You are now looking at an average of 10 clicks per day.

This is not a realistic example for most cases and here is why. First of all, unless you have a finely tuned ad with a killer keyword set, $0.10 per click is very low. So, what will happen is that your ads will be highly restricted by the budget. Therefore, they will not be displayed in a top position. Of course, I could be completely wrong about your product or service. If there is minimal competition, then a $0.10 click may be available for a top position.

Anyways, before I get to far into that tangent, let me continue with the budgeting explanation. Google will also take certain liberties with your budget. By this I mean that they may deliver up to 20% more clicks than your daily budget allows in order to make up for slower times. For our example, this means that some days in that month, they may use up to $1.20 of the budget. This is so that when there is a day or two with lower search levels and only $0.80 or $0.60 of the available daily budget is used, they will still meet the budget quota by the end of the month.

Additionally, there are two options to deliver your budget. These options are Standard and Accelerated. Standard delivery is used to display your ads evenly throughout the day. In the Accelerated delivery mode, the ads are displayed as quickly as possible until your daily budget is reached. For both of these methods, if your budget is way below the recommended budget for your campaign then you will miss out on a large chunk of your potential market.