Previously we’ve been talking about the basics for using keywords, writing ad texts and using language and geographical targeting. As the fourth part of this blog series for beginners or advertisers that just need some repetition in the basics of AdWords, we’re going to focus on using the right bidding and budget.

Cost-per-click (CPC) is the price you’ll pay when a consumer is clicking on your ad. The daily budget is the budget you’re willing to spend per day (per campaign). When it comes to calculating your daily budgets, the rules of thumb below will make this easier for you:

  • Look at your online marketing budget for one month period, and then divide it by 30 days e.g. 300 GBP/30 days =10 GBP/day. This is an easy way to determine your daily budget, which in this case is 10 GBP/day.
  • Use the Opportunities Tab to analyze your budget and get bid ideas, e.g. how you can balance costs and traffic.
Some benefits from these suggestions are that you now will have 100% control over your costs since you’ll never spend more than your budget. Since you only pay when someone is clicking on your ads when you’re choosing CPC bidding, you’ll only spend money on the customers that are actually showing an interest for your product/service. Furthermore, you’ll decide how much you want to spend per click, and at the same time we reduce your actual CPC so you pay the lowest possible price for your ad’s position on the page. You can even specify the CPC bid amounts for individual keywords.

We hope that these tips will be useful for you when advertising with AdWords. Don’t forget to visit AdWords Beginner’s Guide in the AdWords Help center for further information and guidance. Last but not least, remember to keep your eyes open for the next post in this blog series for beginners.

Posted by Omar Abou Selman - Google AdWords MENA
Author: Kristin Sarstedt – the Inside AdWords Team