How you Money is spent on Google AdWords? 
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How Your Money is Spent on Google AdWords Google AdWords gives you total control of your advertising costs. When you use AdWords for advertising, your money will be …

How Your Money is Spent on Google AdWords

Google AdWords gives you total control of your advertising costs. When you use AdWords for advertising, your money will be spent in the form of your budgeting and bidding. You have to set an average daily budget, but there is no minimum spend requirement. As you set up your campaigns in AdWords, you will be required to create a daily budget for each individual campaign. You will need to consider your goals and what you are comfortable spending. After you determine what your priorities are, you will be able to set your budget. You might not be comfortable with setting a daily budget, as most budgets are in terms of month long periods. If you are more familiar with setting a monthly budget, simply divide that number by 30.4, the average number of days in a month, and that will give you your daily budget.

Just as you set up a daily budget when creating campaigns, you will need to set up a maximum cost-per-click bid when creating keywords. Your maximum CPC bid will be the highest amount of money you are prepared to pay every time a customer searches your keyword, and actually clicks on your ad. Choose a bid that you are comfortable with when you are starting out. After your ads have been running for a while you can review reports that allow you to see which of your keywords are performing well, and which are not performing well. What you consider to be “performing well” will depend on your goals- whether or not you want impressions, clicks, or conversions. You will see how many of each of these (impressions, clicks, and conversions) each one of your keywords is generating. This information enables you to increase bids for high-performing keywords, and decrease bids for low-performing keywords. Your goals will directly affect the bid type you choose.

Suppose you have evaluated the priorities of your business and determined that you want impressions. Impressions are tallied each time your ad is displayed.   This is good if you are not very concerned with clicks and conversions, but more concerned with getting your business’s name out there and branding. If this is your goal, you will be using CPM bidding which means cost-per-thousand impressions. You must be in the “display network only-all features” setting, or the “display network only-remarketing” setting to use CPM. AdWords lets you modify CPM settings for each on of your ad groups or each of your placements. Manual CPM bidding is great for targeting placements, or if the message you want to convey is in your ad.


Maybe after evaluating you determined that your priority is clicks. A click is counted every time a -customer clicks on your ad. Cost-per-click bidding means you pay each time a customer clicks your ad. There are two types of CPC bidding; automatic and manual. Automatic is very simple. You merely create your daily limit and let AdWords handle modifying your bids from there. AdWords will work to get you as many clicks as possible given your budget. Automatic bidding is good if your business has a steady advertising budget. It is also great if you do not have time to track and modify every single CPC bid, and you trust and are confident in AdWords’ ability to manage your bids. Automatic bidding is ideal for new AdWords users who want to grow website traffic. However, it is not the best option if you want to sustain ad position. You will not be able to set individual CPC bids, but you will be able to set an overall maximum CPC bid. If automatic is not the best option for you, then manual probably will be. Manual CPC bidding gives you a lot of control. You can set your bids for each ad group, or each keyword, and each ad placement. Manual is ideal for controlling your maximum CPC bid for each of your ad groups, keywords, and ad placements. If website traffic is a primary goal of yours, manual bidding will help you achieve that goal. If your business has no set monthly budget, and is no overly concerned with brand consciousness, then manual CPC is the option you want.

how money is spent on Google Adwords
How money is spent on Google Adwords

If you want to focus on conversions, rather than impressions and clicks, then you will want to adopt the CPA, cost-per-acquisition, bid approach. Conversions are often referred to as acquisitions in AdWords. This is an advanced bidding plan that lets you choose an amount to pay for a conversion/acquisition. A conversion could be a sale, email sign-up, newsletter sign-up, or some other action depending on your business. AdWords programs your bids in such a way to get you the most conversions possible within your CPA budget. However, you will still be paying for each click. In order to use this approach you must turn on conversion tracking. Along with enabling conversion tracking, there are several other requirements for using this bid type. You must have fifteen conversions over the past thirty days, this is necessary for AdWords to be able to make their estimates. You must be targeting the search network, display network, or both, and have a steady conversion rate. This option is good for more seasoned AdWords users.

How to Set Your Daily Budget on Google AdWords

  1. Sign into AdWords
  2. Go to the “Campaigns” tab
  3. Select “+Campaigns”
  4. Choose the campaign type: “Search Network with Display Select,” “Search Network Only,” or “Display Network Only”
  5. After choosing your campaign type you will be sent to the “Select Campaign Settings” page. Go to the “Budget” section of this page and type in a daily budget
  6. Either go through the other campaign setting or skip them
  7. “Save and Continue”


How to Change Your Daily Budget on Google AdWords

  1. Sign into AdWords
  2. Go to the “Campaigns” tab
  3. Select the budget that you want to change
  4. Type in your new budget
  5. “Save”

How to Set or Change Your Bid Strategy on Google AdWords

  1. Log into AdWords
  2. Go to the “Campaigns” list
  3. Choose the “Campaign Name” that you want to set or change a bid strategy for
  4. Choose the “Settings” tab
  5. Choose “Edit” beside the bid strategy
  6. Choose your new bid strategy
  7. “Save”

There are some other things to consider when bidding. Think about when you search for something. How often do you go to the second page of results? Almost never, right? Your customers are the same way; they rarely, if ever, go past the first page of results, because of that you want your ads to show on the first page. AdWords knows how important being on the first page is, so they provide “first page bid estimates.” These estimates tell you what you need to spend to have your ad on the first page, when a search matches your keywords. Google considers your keyword’s quality score and the level of competition for the keywords among advertisers and then, based on those calculations, gives you as approximate number of how much you need to pay to beat your competitors to the first page. Now, think about how far down the first page you typically scroll when searching for something. Being at the top of the first page of search results, can be very beneficial for you. AdWords knows this as well. Just like the first page estimate, AdWords will show you a top page estimate for your keyword. This is the estimated price you will need to spend in order to get your ad at the top of the page.

How to Change Keyword Bids on Google AdWords
  1. Sign into AdWords
  2. Go to the “Campaigns” tab
  3. Go to the “Keywords” tab
  4. Find the “Max. CPC” column
  5. Select the bid you want to modify
  6. Type in your new bid


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