2 Must-Know Google AdWords Tips For Setting Ad Budgets

New Google AdWords pay per click marketers can waste a lot of money if they don’t know how to property set an ad budget. There’s an art to it. Here are two things to keep in mind that will keep you from wasting money with this online marketing method.

Set Limits:  Figure out how much you can afford to spend monthly, then break it down by day. This will prevent you from going over budget.

For example, if your monthly PPC budget is $500, then your daily limit is $16.66.

Set Dollar Limits on Keywords: As in, set a maximum of how much you’re willing to pay for a click on a certain keyword. To do this, use Google’s Keyword AdWord Tool to see what the average spend is for a certain keyword.

Using this info, bid higher if you want to obtain a higher listing on a page. Or, bid lower if you want to be in a lower position. Nothing is set in stone; you can change these at any time if you want. Check your campaigns often, and if your current bids aren’t giving you the results you want, then change them.

Google AdWords Pay Per Click Campaign: Setting Your Bid Tip

Strive for the Top Spot: Often, this is not the most profitable spot to be in. Oftentimes, the number three, four or five position will get you better results. The reason is, a lot of curiosity seekers may click on the top spot. But, those who are “ready to buy” mode will often click three, four or five ads to comparison shop.

So in essence, the person in the top spot is paying for a customer who’s going to click on lower-placed ads anyway.

Keeping these tips in mind will not only keep you from overspending, they will increase your Google AdWords campaign ROI as well.

Posted by PPCBlog in Pay Per Click Advertising, Pay Per Click Tips, Search Engine Marketing on December 20,2009

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