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Bidding and Budget

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭


As i am new to google adwords and spending my time understanding the concept of bidding.But i am not able to understand it.

Can anyone pls help me with explaining the basics how it works in simple language.

1 Expert replyverified_user

Re: Bidding and Budget

Follower ✭ ☆ ☆
# 2
Follower ✭ ☆ ☆
Hi Prateek P,

Welcome to the forum,

I will suggest you to go through the following links to get a clear idea about the Bidding concept of Adwords..

hope it will help

Re: Bidding and Budget

Top Contributor
# 3
Top Contributor

Hi Prateek,


You will get the idea on bidding and budget by the links given by Shuva! I just want to say in simple words:


Budget: Amount you are willing to pay per day. Yes, you can set budget per day in your Adwords account at campaign level. Suppose you have Rs. 100,000 Per month budget and you can't go beyond it. You can simply divide it by 30.4 to calculate per day budget.


Bid: It is the amount that you are willing to pay for each click you receive if using CPC biddng method. It can be set at adgrup level and keyword level. Your keyword level bid will be taken if your adgroup and keyword bid is different. For example: Your have set your max cpc Rs. 10 (cpc can be less for each click but can not be more for each click)

Now you got: 15 clicks @ Rs. 6 Avg cpc.


Advertising cost would be 15*6 = Rs. 90.


Please go through the link and let us know if you have specific questions.




Neha Gupta, AdWordsTop Contributor Follow Me: My Blog | Twitter | Google+ | LinkedIn
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Re: Bidding and Budget

Follower ✭ ✭ ✭
# 4
Follower ✭ ✭ ✭
Hi Prateek,

Welcome to the Adwords Community!

Bidding and Budget are two different concepts.

*)Budget -: Is the cost that you can set for every campaigns. You can set your campaign budget daily basis or monthly basis.

*)Bidding-: You can set bid for you keywords, placements, topics, etc. There are serveral bidding methods like CPC, CPM, Target CPA, Top of the page bid and automatic bidding.

Hope this is help to clearing Bidding and Budget concepts.