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how to set budget properly?

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

 

i want to know how to set daily budget properly?

should it cover all impression traffic or just clicks cost

10 clicks/100 impression a day

mcpc 1$

should i set it as 100$?

or 10$?

 

1 Expert replyverified_user
Marked as Best Answer.
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Accepted by rashu (Google Employee)
September 2015

Re: how to set budget properly?

Top Contributor Alumni
# 2
Top Contributor Alumni

Setting daily budget depends on a lot of things like

1. Objective of your campaign

2. Number of searches your KWs actually have

3. What kind of impression share you want

4. What is your conversion rate and profit %

But in your example if your mcpc is $1 and you are running a cpc campaign and you expect/ want 10 clicks a day then your budget should be $10 although you most probably will end up spending less than that as your actual cpc in most cases will be lower than your mcpc if your quality sores are good.

I am considering these numbers as examples and not actual numbers

Hope this helps

Regards, Nik
LinkedIn  |   @nikhilparachure | My Blog

Re: how to set budget properly?

Top Contributor Alumni
# 3
Top Contributor Alumni

Hi dailyearner,

 

With adwords you only pay for the clicks you receive so you don't need to worry about the impressions.

If your average cost per click was $1 and you wanted 10 clicks per day, set a $10 daily budget

 

If you follow this link it will help you understand how the AdWords system works.

Re: how to set budget properly?

Top Contributor
# 4
Top Contributor

Hello dailyearner,

 

In addition to above thoughts, I would like to add that setting your daily budget is the most important task. Primarily your focus should be daily clicks, the CPC bid which you have assigned and how much you are willing to spend. If your keywords are very competitive, chances are that you will have to set higher daily budget. There are other lot of factors also which depends upon it like geographical area, ad scheduling etc...

 

Traffic estimator is a great tool which gives you an estimate of how much you will have to spend based on the keywords you choose.

 

Go through this article which gives more clarity.

 

Hope that helps!

Pankaj

Re: how to set budget properly?

Top Contributor Alumni
# 5
Top Contributor Alumni

I tend to set the budget a bit higher, to make sure ads are shown all the time.  In your case, I might set the daily budget in the $20-$50 range.  If you do this, though, a few points to consider:

 

1) Make sure you can afford the click costs if the daily budget is actually reached.

2) Check your network distribution settings - keep search campaigns separate from display campaigns.

3) Check your match types - either set lower bids on broad matches, don't use them at all, or frequently add negatives.

4) If any of that doesn't make sense, keep the budget at $10.