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Daily Budget Ripoff

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I noticed that when I set my daily budget to $5 a day, I get 1-3 clicks at $1.50-$5.00 per click. But when I set my daily budget to the Google Adwords recommended amount of $20 a day, I still get the same amount of clicks except the cost per click jumps up to $9-$19. So why would I want to pay for 3 clicks at $20 when I can get the same 3 clicks for $5.00?

By the way I averaging 30 - 40 click per month and I get no responses. About a few years ago I was getting the occasional amount of responses. And if I go back 10 years I could spend $20 a day and get 20-25 clicks.  Smiley Sad

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Marked as Best Answer.
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Accepted by Mini-CM (Community Manager)
December 2015

Re: Daily Budget Ripoff

Top Contributor
# 4
Top Contributor
To paraphrase Orwell - not all clicks are created equal.

A click in position 1or 2 is not the same as a click from position 8 or 9 - equally, a click at 3am is probably not the same as a click at 3pm.

You can set the limit you are willing to pay for a click - this is the maximum bid. But, again, you might find that, if your keywords are highly competitive, you get very few if any clicks or even impressions.

You are right - 10 years ago you could get a lot more clicks for your money. Those days are gone as more and more people are using the platform. It isn't something that marketers can "play with" as they used to. It's big business. And it's harder and harder to make campaigns work.

...and, as it happens - $5 worth of gas 10 years ago probably costs close to $40 today ;-)

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Re: Daily Budget Ripoff

Participant ✭ ✭ ✭
# 2
Participant ✭ ✭ ✭
Hey Robert, how are things?

This is my thinking on this:

When you set you daily budget for $5, the system will try yo find the better clicks for you within that amount of budget. Since $5 is a relative small amount, Google will try to save your budget to participate on very specific auctions.

By the time you set your budget to $20, the system now have more money to play with and it's probably that you participate on more expensive auctions that you wouldn't participate with the previous budget.

Now, I'm wondering why is the number changing so much for you. Do you have a limit set for you CPC or did you leave it open for Google with auto-bidding? This is very important and in case you're using automatic-bidding, I'd recommend for you to set the bids yourself, within what you think is reasonable for you and make some tests.

Regarding responses and clicks, Adwords is something that change all the time, every day, every week. New advertisers begin using it every day, and this changes the market. Everything becomes more competitive every day, and this reflects on your campaigns. We should optimize and improve our campaigns accordingly with time, because user behavior changes, and so should we.

If you're not getting the desired results, then it's time to spare some time on analyses and try to find where you can improve your campaigns. I'd recommend the reading on this article for some tips on optimization:
https://www.en.advertisercommunity.com/t5/Performance-Optimization/wine-bar/td-p/474662

Hope this helps.

Leandro Martinez | Basta1Click

Re: Daily Budget Ripoff

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
I have had Google Customer Service help me several times. They helped me pare down the keywords and set the keyword budget individual. Also recommended search networks only. If I set the daily budget to $20 and got 12-20 clicks it would make sense but that's not what happens in the real Adwords world. I guess those days are gone where you get what you pay for. Good thing when I get gas and spend $40 I get $40 worth of gas. Could you imagine if I spent $40 at the gas station and they gave me $5 worth of gas or I spent $5 and got $5 worth of gas. I am a Freelance programmer here in the U.S.A. I do all the programming myself.
Marked as Best Answer.
Solution
Accepted by Mini-CM (Community Manager)
December 2015

Re: Daily Budget Ripoff

Top Contributor
# 4
Top Contributor
To paraphrase Orwell - not all clicks are created equal.

A click in position 1or 2 is not the same as a click from position 8 or 9 - equally, a click at 3am is probably not the same as a click at 3pm.

You can set the limit you are willing to pay for a click - this is the maximum bid. But, again, you might find that, if your keywords are highly competitive, you get very few if any clicks or even impressions.

You are right - 10 years ago you could get a lot more clicks for your money. Those days are gone as more and more people are using the platform. It isn't something that marketers can "play with" as they used to. It's big business. And it's harder and harder to make campaigns work.

...and, as it happens - $5 worth of gas 10 years ago probably costs close to $40 today ;-)

Re: Daily Budget Ripoff

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
I know it's hard to compete on Adwords when well funded outsourced advertisers from India drive up the cost per click. That's why Craigslist is killing Adwords. Number one, its free and number two, they don't support outsourcers killing the U.S. programmer like Google Adwords does.

Re: Daily Budget Ripoff

Top Contributor
# 6
Top Contributor
I'm not sure I understand the logic to this last comment.

Well funded outsourced advertisers from India - or in my case Spain - are not going to throw money at AdWords just to push up the prices. We do it only if it generates a return on our investment. The higher the cost per click the harder this is to do, but the playing field is level. If the cost is being driven up it is the result of market forces. Probably nowhere else in the world of marketing are market forces so freely at play. Go to any newspaper, TV, radio station, billboard company and ask about advertising. They will present you with a rate card with prices for the different options. There are no rate cards for Google AdWords. Incredibly, and this is hard to comprehend within a traditional business model - you pay what you want to advertise.

This would be like going to a restaurant and waiting for the chef to cook something and then bidding against fellow diners to be served the meal. You could pay as much or as little depending upon all kinds of factors - the quality of the food, the number of other diners interested in the meal, and so on. but this doesn't happen (yet!)

With AdWords the market decides how much it is willing to pay for the advertising space - surely this is one of the foundations of the American Dream. So we really shouldn't blame the Indians!