How come I set my daily limit for one amount, ($10) and yet my daily cost goes over that each day? Yesterday for instance cost me $11.72
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How come I set my daily limit for one amount, ($10) and yet my daily cost goes over that each day? Yesterday for instance cost me $11.72
punditman, if you find that your budget is routinely being exceeded, it most often means you have either too many keywords for your budget, or your keywords are too competitive (read: expensive), or both.
You may wish to check the recommended budget on the 'Edit Campaign Settings' page of your campaign. If you find a big difference there between your actual budget and your recommended budget, it's probably time to streamline your keyword list. I'd suggest at least considering getting rid of really general keywords, keywords that aren't targeted to what the Ad Group offers, and possibly keywords that are so competitive that your ads are showing way down in the results.
Here is some more info from the Adwords FAQ:
Why am I being charged for more than my daily budget on some days?
[adwords.google.com...]
Here is a thought for you. If you set your budget at $10 what happens at noon when your budget is spent? No sales from noon on, right? I set my budgets at $1000 per day because I want my ads to show.
I'm not sure that I'd recommend this until you've gotten familiar with AdWords, and are also able to track your ROI (Return On Investment). Once you know that you're making money, there is no reason not to increase your budget, as zeus661 mentions. ;)
Until you know your ROI, though, I'd never recommend putting your budget higher than you're comfortable with actually spending per day, as you learn the ropes.
Just my $0.02.
AWA
AWA, Not sure if you were addressing me. But, I am pretty confident with my daily budgets.
Sorry if I wasn’t clear, zeus661 - I was actually addressing punditman, and quoting you!
So far I am making money, just hope it keeps up. Now if I could find a few more.
I know what you mean - and glad to hear it's working for you. An excellent example of the value of knowing your ROI! ;)
AWA
Adn thanks AdWords Advisor, I will check Campaign Settings and maybe streamline my key words.
zeus661..first of all I can't spend the type of money you are spending each day because I am selling a service, not a product, which takes either a couple of emails or phone calls, then I have to do the work, and then I get paid -- it's not instant. So my volume is probably much lower than whatever you are selling, but my price is proably much higher. My average CPC is 0.63 cents and many of my keywords are a buck each.
Secondly, my budget does not get spent by noon--on the contrary my ads do run all day or most of the day before stopping. $10 seems to work just about right as daily limit. And lastly I am quite happy with the results since I started with Ad Words at the beginning of Feb. as it has lead to 3 completed projects, several other leads and repeat business promised.
Yeah you could say there is a bit of a difference! What on earth kind of a daily budget is that?
OK, so I checked out the recommended daily budget. It's $10,450.00!Yeah you could say there is a bit of a difference! What on earth kind of a daily budget is that?
Yeah, I sort of thought you'd see something like that punditman. It's the sort of budget our system would come up with for a long keyword list, full of words that would be predicted to have hundreds or thousands of impressions per keyword, each day.
Think of it this way - which, while oversimplified, will illustrate the principle:
If your ad is estimated to shows up 10,000 times a day for a single keyword, our system assumes you'll get about 200 clicks. (Roughly a 2% CTR, in other words.) So whatever your Max CPC is times 200 is the most you could spend for those clicks. Say your Max CPC is $1.00 - well the system thinks you could spend up to $200.00 per day for that keyword, given typical traffic and average CTR, with your chosen Max CPC.
Then, the system does the same estimate for every other keyword you have.
The result is your recommended daily budget, which amounts to the system's estimate of the budget you'd need for your ad to show for every search of every keyword (and also every variation of every keyword if you are broad or phrase matched), given your chosen Max CPC.
So the trick is to avoid really general keywords. For example the keyword 'software' will be included in many thousands more searches per day than the much more specific keyword 'architectural CAD software'.
Hope that brings things into focus.
Bottom line, if you have a daily budget of $10.00 and a recommended budget of $10,000, you have a situation in which our system will have difficulty in limiting the appearance of your ad to only $10.00 per day - because there is so much more traffic out there than your budget will allow for.
If any of this rings true for your account, I'd for certain limit your keyword list, use really specific keywords rather than general ones, and make negative keywords your new best friends. ;)
AWA
