Strange suggestion

[HitProf]

I just tried the budget suggestion tool at
[adwords.google.com...] and I got this answer:

suggested max CPC: EUR €38,90
suggested daily budget: EUR €50,00
estimated av. CPC: €9,60
av. position 1,1

It also estimates less than 3 clicks a day. Impressions and CTR are not given by this tool.

I find this weird, especially when the most common mistake we're told is too low a daily budget in comparison to the CPC. Shouldn't this suggested DB be a lot higher?

[mike_ppc]

Perhaps I'm not getting it, but 3 clicks * 9.6 = 28.8 EUR, so 50 EUR daily budget should be enough.

Am I missing something?

[HitProf]

I'd say: this daily budget doesn't alow for more than 5 clicks.

Apart from that I think 3 clicks is rather low for this keyword, so maybe the 3 clicks follow from the daily budget rarther than the other way around.

[mike_ppc]

You're probably right.

I doubt that a KW that you could pay 9.6E/click would have only 3 or 5 clicks per day....

But logically, the estimator can "guesstimate" the number of clicks, average CPC - so the necessary daily budget.

But theory makes not even 0.02....