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How much should be my limit per day cost if my total budget is $50?

Zee Community Manager
Community Manager
# 1
Zee Community Manager
Community Manager

Hello, I'm new in Google AdWords. I need an advice from experienced advertiser so please let me know. My total budget is 50$ and I would love to try this at first but I really don't know how to manage it. My question is How much should be my limit per day cost if my total budget is $50?


This popular discussion was copied from the former Help Forum.

 

Top Contributor, AdWiser replied: 

 

Hello, Iva.

I'll try to pick it up from where AWP has left it. 50 / month. That's 1.7 USD per day, roughly, on average. Quite small a budget.

We have no idea what the cost per click may be, but let's pretend, as an exercise, that it's going to be 0.08. You'll get 20 clicks a day, for that budget. If you want to advertise 24/7, that's less than one click per hour. If you advertise several keywords, let's say 10, each of them will get the chance to trigger an ad twice during a day (of course, some will be shown more often, others less often).


One issue you may face, with such a small budget, is that for keywords which are searched very often, the system will not trigger the ads, because there's a high chance to go over your daily budget if the enable them. Whenever the daily budget is pretty low, CPC is high, and therefore it only allows you a few clicks a day for a highly searched keyword, your ads won't show.
That's because AdWords uses daily budgets, not monthly budgets. So in order to stop at 50 a month you'll have to use 1.66 a day in your campaign settings.
There's a small chance to see how things going if you start with a very tight scheme. One campaign alone, one ad group, and very few keywords with exact matches. Set your budget at 6 USD/day (the system will use up to 20% more every day and will stay within 180 USD across 30 days), and pause your campaign after 7 days, when you'll see it has used 6x1.20x7 = 50.4 USD.
7 days gives you an idea of how your campaign does across a whole week, weekend included. Using exact matches, as opposed to broad or phrase, will make sure that you'll get only qualified impressions, although fewer.
You should be able to tell, if nothing else, what budget should you look at after the trial period. I doubt you'll be able to draw a conclusion after such a short period (especially since holidays are approaching), but maybe the results will signal you that there's potential in this form of advertising and you'll continue and optimize as you go along.
The biggest hurdle, apart from the budget, is that you'll need surgical precision in order to make it work. Meaning that you should set everything up almost perfectly from the very beginning. And this does not happen, usually, on your first campaign.
Two more cents from me,
Calin


 
Zee
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1 ACCEPTED SOLUTION

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Marked as Best Answer.
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Accepted by topic author Zee
September 2015

Re: How much should be my limit per day cost if my total budget is $50?

[ Edited ]
Sq
Explorer ✭ ☆ ☆
# 3
Sq
Explorer ✭ ☆ ☆

Great response but you may want to try an alternative method. See below:

 

Keyword Tool


Excellent tool for those with restrictive budgets. Be sure to switch Avg CPC & Local Search Trends on in columns. Learn your target market and what it is potentially going to cost you. Let us look at one of many ways to interpret the data.

 

Using KW Tool

 

  • Enter your landing page into the website box, check what keywords may give you a slight increase in Q.S due to relevancy. No problem if you do not discover anything decent and if you do, you HAVE to keep in mind Q.S is leverage to your bid.
  • Next go back to the search box, delete your URL from the website box and enter a potential keyword in the word or phrase box. Ensure targeted locations is set to the country you are targeting. Check the left hand side under 'Match Types' switch to [Exact] match only

Potential Structure

 

  • Flick through the related keywords and visualise what your campaign will look like. You’re restricted to one campaign, if you are picking multiple keywords then place each major variation of keyword in to groups.
  • For example show different text ads to people looking for different items. I will group search terms related to buying “red trainers” and dedicate a text advert letting users know I stock red trainers. My second ad group will be for blue trainers.

Click Through Rate

 

  • When selecting a keyword keep in mind, if the keyword is searched too often and lands you with more impressions then clicks, your click through rate will be effected. If your CTR drops below 1.5% it may become infected and start dropping the quality score of the keyword on your campaign. This could lead to a drop in your ad  position and relevancy of your advertisement or may increase your costs
  • To increase relevancy select highly relevant keywords to your marketing goals or desired result. Make sure the text ad content echoes the needs of your potential client. Remember, by seeing your text ad the users mind has already been read, we know what they want The text ad should only be shown to people who type in specifically what you can offer
  • In example if a user searched for red trainers, they are more likely to click on a text ad displaying a “red trainer’s online shop” as opposed to an ad displaying “many trainers of all sizes online”. Text ads for [Exact] match search terms should mirror exactly what the user is looking for.

Potential daily budget & Avg CPC


  • On each keyword the first figure we look at is Avg CPC. The average of what it cost per click for total number of advertisers over the last 30 days.
  • Multiply the Avg CPC by the number of clicks you would like in a day. The end figure could potentially be your daily budget for the single keyword. Take into account the number of users that you want clicking on your ad could always see it and decide not to click.
  • The true cost per click of your keyword will be based on your max bid but not the max bid itself (in most cases). The higher you bid against the Avg CPC the better.
  • If the Avg CPC for your click is reasonably high, maybe £50 is not going to cut it. For example, if you’re ideal keyword has a cost of £40 your ad will never be shown unless the daily budget is set to £50 – enjoy the one lucky hit you do get

After searching 'buy trainers' (example KW)

  • Competition was 'high' if it was 'low' I may have got away with bidding next to nothing as not  many companies would be competing for the first page. If it was 'medium' I may have bid in-line with Avg CPC (£0.55), now that it is 'high' we know I have to bid around 20%-30% higher than Avg CPC.

Local Monthly Searches & Trends

 

  • We appreciate other bidders will be competing on Broad + Phrase match. Stats for these should be disabled on the left.
  • 560 searches for my ideal keyword were carried out over the last 30 days. Each user may have searched the same term from multiple locations or devices.
  • We cannot see numbers for those who may have broad searched my keyword (e.g. buy discount trainers online) or phrase (e.g. “buy trainers today”) we would directly  bid on these variations if needed
  • For an idea of what could happen over the next 30 days look to the Local Search Trends which in this example had shown a quite even volume of searches across last year. Each bar of the graph is a month of the last year starting with January. The increase of searches is NOT increase of sales. Dips and peaks in the graph could give a valued indication on how the keyword may perform over the next month. It is advisable to balance the last 30 day search volumes with next month’s expectations based on trends from last year

Campaign Settings:

 

  • Schedule your adverts to appear at key times of the day. Realistically until you decide to reinvest you should not advertise 24/7 to target absolutely everyone. For example you may only target evenings when some competitors depleted daily budgets restrict their presence
  • Accelerate your ad delivery as you want your ad to show every time your keyword matches a search query
  • Use dynamic{KeyWord:x}code or the local modifier {lb.city:Local} in your text ads to increase relevancy

How much should be my limit per day cost if my total budget is £50?


  • Use the above to find specific keywords and increase quality score.
  • Decide on your maximum bid and number of selected keywords
  • Multiply the figure of your bid by the number of clicks you would like to receive.and maken a educated decision when allocating budget p/d. (Max CPC X Clicks = Budget)
  • The hope is - attempts to increase relevancy could reduce Avg CPC or increase Ad Rank giving slightly more clicks then expected
  • Check your performance on a weekly basis, the actual number of clicks you receive may be lower than planned so you would systematically increase your daily budget
  • If you receive too many clicks it may mean your budget is being spread too thin across too many keywords.
  • Hopefully this strategy and your selected daily budget lead to getting a sample result and encourage you to add more funds to the campaign

 

Your daily budget is like an online door to your shop. When the daily budget has depleted, you shut your doors to potential clicks, impressions and customers. Picture a virtual office in the Google city and see yourself open for business directly next door to succesful competitors. A position at the heart of a triggered keyword, located in the right place at the right time offering users exactly what they are looking for. The longer your office is open, the more likley you are to receive the right client.

 

View solution in original post

Re: How much should be my limit per day cost if my total budget is $50?

Top Contributor
# 2
Top Contributor

Great stuff here!

 

Pete

petebardo -- Deadhead doing AdWords
Marked as Best Answer.
Solution
Accepted by topic author Zee
September 2015

Re: How much should be my limit per day cost if my total budget is $50?

[ Edited ]
Sq
Explorer ✭ ☆ ☆
# 3
Sq
Explorer ✭ ☆ ☆

Great response but you may want to try an alternative method. See below:

 

Keyword Tool


Excellent tool for those with restrictive budgets. Be sure to switch Avg CPC & Local Search Trends on in columns. Learn your target market and what it is potentially going to cost you. Let us look at one of many ways to interpret the data.

 

Using KW Tool

 

  • Enter your landing page into the website box, check what keywords may give you a slight increase in Q.S due to relevancy. No problem if you do not discover anything decent and if you do, you HAVE to keep in mind Q.S is leverage to your bid.
  • Next go back to the search box, delete your URL from the website box and enter a potential keyword in the word or phrase box. Ensure targeted locations is set to the country you are targeting. Check the left hand side under 'Match Types' switch to [Exact] match only

Potential Structure

 

  • Flick through the related keywords and visualise what your campaign will look like. You’re restricted to one campaign, if you are picking multiple keywords then place each major variation of keyword in to groups.
  • For example show different text ads to people looking for different items. I will group search terms related to buying “red trainers” and dedicate a text advert letting users know I stock red trainers. My second ad group will be for blue trainers.

Click Through Rate

 

  • When selecting a keyword keep in mind, if the keyword is searched too often and lands you with more impressions then clicks, your click through rate will be effected. If your CTR drops below 1.5% it may become infected and start dropping the quality score of the keyword on your campaign. This could lead to a drop in your ad  position and relevancy of your advertisement or may increase your costs
  • To increase relevancy select highly relevant keywords to your marketing goals or desired result. Make sure the text ad content echoes the needs of your potential client. Remember, by seeing your text ad the users mind has already been read, we know what they want The text ad should only be shown to people who type in specifically what you can offer
  • In example if a user searched for red trainers, they are more likely to click on a text ad displaying a “red trainer’s online shop” as opposed to an ad displaying “many trainers of all sizes online”. Text ads for [Exact] match search terms should mirror exactly what the user is looking for.

Potential daily budget & Avg CPC


  • On each keyword the first figure we look at is Avg CPC. The average of what it cost per click for total number of advertisers over the last 30 days.
  • Multiply the Avg CPC by the number of clicks you would like in a day. The end figure could potentially be your daily budget for the single keyword. Take into account the number of users that you want clicking on your ad could always see it and decide not to click.
  • The true cost per click of your keyword will be based on your max bid but not the max bid itself (in most cases). The higher you bid against the Avg CPC the better.
  • If the Avg CPC for your click is reasonably high, maybe £50 is not going to cut it. For example, if you’re ideal keyword has a cost of £40 your ad will never be shown unless the daily budget is set to £50 – enjoy the one lucky hit you do get

After searching 'buy trainers' (example KW)

  • Competition was 'high' if it was 'low' I may have got away with bidding next to nothing as not  many companies would be competing for the first page. If it was 'medium' I may have bid in-line with Avg CPC (£0.55), now that it is 'high' we know I have to bid around 20%-30% higher than Avg CPC.

Local Monthly Searches & Trends

 

  • We appreciate other bidders will be competing on Broad + Phrase match. Stats for these should be disabled on the left.
  • 560 searches for my ideal keyword were carried out over the last 30 days. Each user may have searched the same term from multiple locations or devices.
  • We cannot see numbers for those who may have broad searched my keyword (e.g. buy discount trainers online) or phrase (e.g. “buy trainers today”) we would directly  bid on these variations if needed
  • For an idea of what could happen over the next 30 days look to the Local Search Trends which in this example had shown a quite even volume of searches across last year. Each bar of the graph is a month of the last year starting with January. The increase of searches is NOT increase of sales. Dips and peaks in the graph could give a valued indication on how the keyword may perform over the next month. It is advisable to balance the last 30 day search volumes with next month’s expectations based on trends from last year

Campaign Settings:

 

  • Schedule your adverts to appear at key times of the day. Realistically until you decide to reinvest you should not advertise 24/7 to target absolutely everyone. For example you may only target evenings when some competitors depleted daily budgets restrict their presence
  • Accelerate your ad delivery as you want your ad to show every time your keyword matches a search query
  • Use dynamic{KeyWord:x}code or the local modifier {lb.city:Local} in your text ads to increase relevancy

How much should be my limit per day cost if my total budget is £50?


  • Use the above to find specific keywords and increase quality score.
  • Decide on your maximum bid and number of selected keywords
  • Multiply the figure of your bid by the number of clicks you would like to receive.and maken a educated decision when allocating budget p/d. (Max CPC X Clicks = Budget)
  • The hope is - attempts to increase relevancy could reduce Avg CPC or increase Ad Rank giving slightly more clicks then expected
  • Check your performance on a weekly basis, the actual number of clicks you receive may be lower than planned so you would systematically increase your daily budget
  • If you receive too many clicks it may mean your budget is being spread too thin across too many keywords.
  • Hopefully this strategy and your selected daily budget lead to getting a sample result and encourage you to add more funds to the campaign

 

Your daily budget is like an online door to your shop. When the daily budget has depleted, you shut your doors to potential clicks, impressions and customers. Picture a virtual office in the Google city and see yourself open for business directly next door to succesful competitors. A position at the heart of a triggered keyword, located in the right place at the right time offering users exactly what they are looking for. The longer your office is open, the more likley you are to receive the right client.

 

Re: How much should be my limit per day cost if my total budget is $50?

Zee Community Manager
Community Manager
# 4
Zee Community Manager
Community Manager
Great post, Sq. Thanks.
Zee
G+