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budget for campaigns vs.budget for ads

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I'm a newbie to Google Ads. I can't seem to find out whether the budget I set for a campaign is the total of the budget that each ad in the campaign will use. For example, if I set $20 per day and have two ads, does each ad spend $20 per day? Or is that $20 per day what the total campaign is allowed to spend?

1 Expert replyverified_user

budget for campaigns vs.budget for ads

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆

Hi Ilene

Daily budget is set for every campaign, no matter how many adgroups and ads you create in single one.

Re: budget for campaigns vs.budget for ads

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

So let me make sure I understand this correctly. If I want to spend a total of $40 a day within one campaign, each ad would spend $20 per day?

Re: budget for campaigns vs.budget for ads

Top Contributor
# 4
Top Contributor

No. The cost per click is set by a price set during an auction. Watch this video  that explains the basics of the AdWords auction;

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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budget for campaigns vs.budget for ads

Badged Google Partner
# 5
Badged Google Partner

There are several different levels to an account. Here's an image/article:

 

image

 

http://www.optmyzr.com/blog/back-to-basics-1-how-to-structure-an-adwords-ppc/

 

The default ad rotation settings are "optimize for clicks". Meaning the ad that has a higher CTR will show far more often than any other ads in each adgroup. If you want even ad rotation, then change the campaign setting to "rotate indefinitely". If there are two ads, in one adgroup, only one adgroup in the campaign, and only one campaign in the account with a $40/day budget - Then each ad may generate about $20/day in costs.

 

However, that will depend on the CTR of each ad. If each ad shows for the same number of impressions, but one ad has a much higher CTR than the other, then the ad with the most clicks will accrue more cost. 

 

The ad is the only part of the account the end user actually sees (impressions) and interacts with (clicks). Your KW's and campaign targeting settings determine who may see your ads where (based on their search query). Your adgroup bid determines how much you are willing to pay for clicks, whether or not your ad is eligible to show, and in what position.

Tom