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CPM

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# 1
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If I set my maximum daily amount(e.g. $5 per day), I understand I pay ONLY if someone clicks on my ad. What if the clicks surpass my maximum? I am still charged? Do I simply keep track of that on a daily basis, and reduce or expand as I see fit? My website is more informational, not an actual retail site - any advice - never done this before, and don't want to make myself liable for $500 the first week.... any advice?

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Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: CPM

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# 2
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Hi Michael,

Your daily budget will only be exceeded by a maximum of 20% of the daily budget. This is done to account for certain high volume days. That being said, you will not be charged more than 30.5 times your daily budget in a month. So even if it does go over on some days it will then spend less on other days.

There is no way that you will be charged $500 dollars a week if your daily budget is set at $5 a day.

When all is said and done though you need to be careful with daily budgets that low though as you may find that your will receive almost no traffic. If its say $2 CPC for your keywords and your daily budget is $5, AdWords will spend a maximum of $6 a day, BUT it is possible for your ad to be served many times simultaneously so you may find that AdWords will serve your ad in 1 round (say 8 impressions at once) and get 2 clicks then not show your ad again as it it can not afford to receive 2 clicks again as this would exceed the maximum, thus your ad will not be shown again for the day.

Hope this helps

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Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: CPM

[ Edited ]
Badged Google Partner
# 3
Badged Google Partner

Hi Michael,

 

  • CPM bidding (as in your title) is based on the cost per thousand impressions and only available on the display network
  • CPC bidding (as in your description) is based on cost per click

For an overview of the different bid strategies, have a look at this page: https://support.google.com/adwords/answer/2472725

 

As for your budget, this is set per day. If your daily budget runs out, your campaigns and ads will be paused for the remainder of the day so that you don't spend more than you intended. Please note that AdWords can exceed your daily budget by 20% when necessary, it will make sure however that on a monthly basis your daily average is respected. 

 

More information on budgets (important): https://support.google.com/adwords/topic/3119127

View solution in original post

Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: CPM

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭
Hi Michael,

Your daily budget will only be exceeded by a maximum of 20% of the daily budget. This is done to account for certain high volume days. That being said, you will not be charged more than 30.5 times your daily budget in a month. So even if it does go over on some days it will then spend less on other days.

There is no way that you will be charged $500 dollars a week if your daily budget is set at $5 a day.

When all is said and done though you need to be careful with daily budgets that low though as you may find that your will receive almost no traffic. If its say $2 CPC for your keywords and your daily budget is $5, AdWords will spend a maximum of $6 a day, BUT it is possible for your ad to be served many times simultaneously so you may find that AdWords will serve your ad in 1 round (say 8 impressions at once) and get 2 clicks then not show your ad again as it it can not afford to receive 2 clicks again as this would exceed the maximum, thus your ad will not be shown again for the day.

Hope this helps
Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: CPM

[ Edited ]
Badged Google Partner
# 3
Badged Google Partner

Hi Michael,

 

  • CPM bidding (as in your title) is based on the cost per thousand impressions and only available on the display network
  • CPC bidding (as in your description) is based on cost per click

For an overview of the different bid strategies, have a look at this page: https://support.google.com/adwords/answer/2472725

 

As for your budget, this is set per day. If your daily budget runs out, your campaigns and ads will be paused for the remainder of the day so that you don't spend more than you intended. Please note that AdWords can exceed your daily budget by 20% when necessary, it will make sure however that on a monthly basis your daily average is respected. 

 

More information on budgets (important): https://support.google.com/adwords/topic/3119127

Re: CPM

Follower ✭ ✭ ✭
# 4
Follower ✭ ✭ ✭
Dear Michael S

In Addition to Expert advice by Mr Clynton &Ken M , I would Recommend you to go through Following Article based on CPC - Cost Per Click :

https://support.google.com/adwords/answer/6055137?rd=1

usually 1st Time Advertisers on Google Adwords Prefer this Model in their first Experience .
The Article will Explain you What CPC is and How Exactly it works.