Once you decide which networks you want to show your ads on and who you want to show them to, you're ready to think about your budget. As you learned in a previous module, there are two things that you'll want to consider:
- Your budget
- Your bidding strategy
Your daily budget is the amount that you set for each campaign to indicate how much, on average, you're willing to spend per day.
New AdWords advertisers might want to start small — between $5 and $50, for example — and then run their campaign for a few weeks before re-evaluating. You should choose a daily budget for each campaign based on your advertising goals and the general amount you're comfortable with spending each day.
If you're used to working with a monthly advertising budget, you can calculate the average amount you might budget per day by dividing your monthly budget by 30.4 (the average number of days per month).
Here are a few things to keep in mind about your budget:
- In general, the AdWords system will aim to show your ads as much as possible until your daily budget is met. Because customer traffic fluctuates from day to day, AdWords can allow up to 20% more clicks in a day than your budget specifies. However, our system makes sure that in a given billing period, you're never charged more than the monthly charging limit — 30.4 multiplied by your average daily budget amount.
- When your average daily budget is reached, your ads will typically stop showing for that day. You'll want to consider your campaign's ad delivery method, which determines how quickly your ads are shown and how long your budget lasts during a given day, when setting your daily budget. The "Standard" delivery method is like a slow-burning candle – it spreads your budget throughout the day. The "Accelerated" delivery method is more like jet fuel – it uses your budget more quickly.
Your bidding strategy
As you learned in a previous module, AdWords offers several bid strategies that are tailored to different types of campaigns. Depending on which networks your campaign is targeting, and your advertising goals, you can determine which strategy is best for you.
To refresh your memory, here are the bid strategies you can choose from:
You can also use more advanced strategies like bid adjustments to bid more or less competitively across devices, locations, time of day, and more, or flexible bid strategies to automatically set bids to optimize for your performance goals.
In general, the higher your bid and the more relevant your ads and keywords, the more likely your ad will show at a higher position on the page. By managing your bids, you can influence the amount of traffic your ads receive.
Bid adjustments and flexible bid strategies