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Relationship between the budget amount and the pay by click amount.

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I am still in the process of filling the account form.

I still can't follow the

  • relationship between the budget amount and the pay by click amount.
  • When I enter a budget amount in the "Your budget" section I get 7 clicks and 441 impressions, what does that mean?
  • Does it mean that if I get 7 clicks on the first day, will it cost me no more than my daily Budget amount.
  • will my add not appear after the 7th click on the day 
  • If I get no clicks will it cost me nothing that day but eventually I'll pay that amount on some scheduled bill?

Please don't send me off to read something, just explain it to me here.

Marked as Best Answer.
Solution
Accepted by Eric Gehler (Badged Google Partner)
September 2015

Re: Relationship between the budget amount and the pay by click amount

Badged Google Partner
# 2
Badged Google Partner

Hi Gea,

 

Basically, your pay-per-click (ppc) amount is what you're willing to pay for 1 click on your advertisement, so for 1 visit to your website.

 

Your daily budget is what you're willing to pay per day - so all the cpc's / visits together - and per campaign, since the daily budget is set at the campaign level. (skipping shared budgets here for a moment) Also, AdWords can exceed your daily budget with 20% on any day, it will however make sure that your budget constraints are respected on a monthly basis.

 

The "Your budget" section gives you an idea of what you can expect, this is just adwords telling you that with the given ppc amount and budget, it expects you to get around 7 clicks per day. (so yes, those 7 clicks would fit within your daily budget)

 

When you exhaust your daily budget, your campaign and ads will be paused until the next day starts. If you don't get clicks, you don't pay. The budget is just there to limit your maximum spend, there is no minimum.

 

I hope this helps you, however, this is pretty important stuff, it would be good to be comfortable with it before you really get started since getting these things wrong can get costly. I'd still advise to go through the Budgets and bids page on the AdWords support site.

 

 

Ken

 

 

Re: Relationship between the budget amount and the pay by click amount

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Thanks Ken, that's clear. I've created the account but have it paused till I am happy with my keywords.

 

Question - I think I know the answers so just for verification

  • There's no limit to the number of keywords for a campaign?
  • Too many keywords may result in clicks from the wrong potential customer so my Ad stops running for the day?
  • Are Ad Group keywords just a subset of Campaign keywords - i.e. every time I create and Ad Group I will inherit the keywords of the Campaign and then take out what I don't want and substitute others?

Enough for now.

And thanks again

Re: Relationship between the budget amount and the pay by click amount

Badged Google Partner
# 4
Badged Google Partner
  • I believe there is a limit to the number of keywords per campaign, but it's really high (thousands?)
  • For the keywords: when a potential customer is ready to buy a product or service you provide, what would be the search terms he uses? Define your keywords based on that. Start small with a few, the best ones, and expand from there if you don't get enough traffic.
  • Campaigns have ad groups, ad groups have keywords. Keywords are defined in an ad group. There is a tab keywords under campaign settings but that just lists all the keywords in all the adgroups within that campaign. (so no inheritance, when you create an ad group you have to define at least 1 keyword for that ad group or the ad group will not be doing anything) Important is that all keywords in an ad group share the same advertisements of that ad group so often people create 1 ad group per product (type) or service they provide.

 

Ken

Re: Relationship between the budget amount and the pay by click amount

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Hi Ken,

Ok, I am ready to go.

I've created the Keywords (mainly phrase match) and I have enabled the Campaign but I am still getting the red banner with

"None of your ads are running (Last updated: 7 hours ago) - Your campaigns and ad groups are paused or removed. Enable them to begin showing your ads. Guide me Learn more"

When I follow "Guide Me" link to enable, I see that it is already enabled (green dot). Is it a timing thing, do I have to wait 24 hours or is the Ad group really paused?

 

In the Ad Tab the Status is Approved, and the Ad is Enabled (green dot)

In the Keywords Tab the status is "Eligible" for most but "Low Search volume" for others.

 

When I hover over the keyworks status (eligible) I get a pop up saying NO --->

Your keyword isn't triggering ads to appear on Google right now due to a low Ad Rank. Ads are ranked based on your bid and Quality Score.

Is that because the Ad is NOT enabled or my bid is too low and/or my keywords are rubbish.

Re: Relationship between the budget amount and the pay by click amount

Follower ✭ ☆ ☆
# 6
Follower ✭ ☆ ☆
Are Your Adgroups Paused? Then first enable/activate them.
If you have "Eligible" for most of keywords, then you ad should run.
"low Ad Rank" Firstly (and one should) need to improve ad rank, by offering quality and relevant content on landing page. And other way is to increase your keyword bid.

Re: Relationship between the budget amount and the pay by click amount

Badged Google Partner
# 7
Badged Google Partner
Hi Gea

There might be a bit of a delay before the red banner is removed.

The message when hovering over the keyword bubble is something we should pay attention to if it's still there after a few hours. Your Ad Rank defines at which position your ad is shown, and is based on both your bid and your quality score.

First thing to do is check the quality score of those keywords, QS can be shown in a separate column or will also be shown when hovering over a keyword bubble. Having a QS of 6/10 or higher to start with would be ok.

If QS is ok, check how much you're bidding for that keyword (the max cpc number) and whether that's comparable to the tests you did with the keyword tool (see your first post) and if there are any messages like "bid too low for first page". (if this is the case, it's shown below the max cpc)

Re: Relationship between the budget amount and the pay by click amount

Visitor ✭ ✭ ✭
# 8
Visitor ✭ ✭ ✭
Thank you, you are very good at explaining.
I am testing my key words LIVE but my Ad is not appearing even thought NO other Ads appear on the front page for that keyword for any other Ad Words clients.
If no Ads appear on the page, why am I not the highest ranked client?
If my logic is correct then my Ad should appear?
Is there some thing I've missed?
Is it still not enough bid dollar?

Re: Relationship between the budget amount and the pay by click amount

Badged Google Partner
# 9
Badged Google Partner

Gea,

It's best to test your ad with the Ad Preview & Diagnosis Tool in the Tools tab.

 

Some reasons that your ad might not be showing when testing live:

  • Quality of your ad isn't high enough, even when there are no competitors
  • Your ad delivery method under campaign settings is set to "Delivery evenly over time" meaning that when your budget restricts the number of times an ad can be show per day, AdWords will try to show it evenly during the day
  • Ad has ben disapproved
  • ...

You might want to take a look here: https://support.google.com/adwords/troubleshooter/1711301?hl=en

 

Do you see your ad getting impressions and clicks?

Re: Relationship between the budget amount and the pay by click amount

Visitor ✭ ✭ ✭
# 10
Visitor ✭ ✭ ✭
Thanks Ken,

No impressions, no clicks.
Ad quality can't be it, with 4 lines there's not much option for flair. And competitors Ads don't look much different.
It has to be not enough Bid dollar.
I've modified delivery to "concentrated".
Is there a place in "Preview and Diagnosis" to see results of increasing budget?