Google AdWords Campaign Budget
Now you need to decide on how much you can/want to spend a day.
This depends on your market, how much you are paying per click,
your budget, and your profit margin.
For example, someone bidding on real estate may have to pay $1
to $10 per click on their keywords while someone bidding on beanie
babies may only pay $0.05~0.10 cents per click. However, you can
also imagine that the profit margin on real estate is significantly
higher than on beanie babies. As a result, while the business selling
the beanie babies may afford and need to spend only $2 a day on
their ad campaign, the real estate business may be spending hundreds.
When you first start your campaign, I’d recommend you be
more conservative until you can nail down what keywords, bidding
prices, ads, etc. really work the best for you.
In our children martial art example, let’s start our daily
budget at $1.50 and our maximum cost per click at $0.10. Now let’s
use Google’s “View Traffic Estimator” and see
what the Google’s estimate of your performance looks like.
From the figure above, you can see that at $0.10 all of our keywords
satisfy their minimum bidding price. Furthermore, Google gives you
an estimate (if possible) what your ad ranking would be at the given
price. Since there isn’t much competition for our keywords
other than the one I added for this example “martial art”,
Google cannot give any ranking data. For the “martial art”
key phrase, we can expect an ad rank between 1 and 3.
You have just successfully setup your first ad campaign and written
your fist ad. You’ll want to go back into your ad campaigns
and add other relevant ad groups along with adding more ads per
ad group (we’ll talk about why you want more than one ad per
ad group and how you can use that to improve your performance).
You will also want to carefully monitor the performance of each
of your keywords and add/remove as appropriate. Go back to WordTracker
to get more ideas for keywords. You might also want to look into
purchasing a handy tool called Keyword Elite that will make your
searching and researching for keywords much easier.
Let’s move on now and talk about a finer point of Google
AdWords that people tend to overlook – how to group and categorize
your campaigns and ad groups. Click here:
Organizing AdWords Campaigns