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what is the difference between Bid and Budget

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# 1
Visitor ✭ ✭ ✭

Can any one explain me what is the Difference between Bid and Budget With An EXAMPLE? please

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Accepted by topic author Ruchi T
September 2015

Re: what is the difference between Bid and Budget

Top Contributor
# 2
Top Contributor

Hi @Ruchi T, I'll try.

 

Imagine you've gone to an auction at a local auction house.  Your budget is how much money you have in your wallet - it's how much you're prepared to spend in total for that day.  Your bid is how much you're prepared to pay for one individual item in the auction, so you could buy ten paintings, say, at $1,000 each if you had a budget of $10,000, or one costing $5,000 and two costing $2,500 each, etc.

 

In AdWords terms your budget is the same - it's how much you're prepared to spend each day.  In AdWords your bid is how much you're prepared to pay for a click on each Keyword (in the CPC, cost per click, model).  Note that it's each Keyword and every click.  So, if you have the same budget of $10,000 you could "buy" 5,000 clicks at $2 each from one Keyword or any combination of bids and click numbers depending upon how many Keywords you have.


Does that help?

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author Ruchi T
September 2015

Re: what is the difference between Bid and Budget

Top Contributor
# 2
Top Contributor

Hi @Ruchi T, I'll try.

 

Imagine you've gone to an auction at a local auction house.  Your budget is how much money you have in your wallet - it's how much you're prepared to spend in total for that day.  Your bid is how much you're prepared to pay for one individual item in the auction, so you could buy ten paintings, say, at $1,000 each if you had a budget of $10,000, or one costing $5,000 and two costing $2,500 each, etc.

 

In AdWords terms your budget is the same - it's how much you're prepared to spend each day.  In AdWords your bid is how much you're prepared to pay for a click on each Keyword (in the CPC, cost per click, model).  Note that it's each Keyword and every click.  So, if you have the same budget of $10,000 you could "buy" 5,000 clicks at $2 each from one Keyword or any combination of bids and click numbers depending upon how many Keywords you have.


Does that help?

 

Jon

AdWords Top Contributor Google+ Profile | Partner Profile | AdWords Audits

Re: what is the difference between Bid and Budget

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭
I'm new and don't understand any of this talk. The man from Google had me say I would spend $5.00 per day. Am I going to get anywhere? thanks for any help.

what is the difference between Bid and Budget

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

good explanation. Very helpful!