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  1. #1
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    Google Adwords PPC Budget?
    I'm thinking about starting a Google Adwords PPC campaign. What is a good daily budget for a newbie like me just starting out? After reading some of the posts on this forum, I'm nervous I'll end up spending a ton of which I really can't afford.

  2. #2
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    Never spend a penny that you cannot afford (and I don't just mean for ppc).

    Your question has too many unknown variables for anyone to reasonably answer. Since you apparently don't recognize that, I'd say you're headed for trouble, or an expensive education. Set your budget ridiculously low.

  3. #3
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    Yep, what Donuts said. Start with something you can afford to lose, you'll probably lose at the start, some continue that losing afterwards. Hopefully after awhile you'll learn how to make money from it, nice skill to have. I think i started at about $10 a day and am up to about $150 a day. Some spend thousands and thousands. I'm constantly trying new things out, some have been making me money for years, those that don't, I drop and move on. I keep the ones where I break even* or make money.

    I was asked before why I keep the ones where I break even. Because it's a tax write off, accountant tells me to spend and spend on advertising and also I always bring them to my site so I have possible newsletter sign up, bookmarks, maybe word of mouth from the break even PPC, so long term that break even PPC might make me money.

  4. #4
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    I agree, be careful when you begin. However, there is a catch with the budgeting because if it's set too low, your ad won't appear very often.

    What really helps is to sign up for some real-time reporting tool (I use indextools.com...they have a free trial, so you can cancel before that kicks in though I find the service invaluable.)

    That way you know what people are coming in with in real-time so you can start spotting negative keywords immediately, create more useful keyword combinations, etc. I also begin campaigns when I know I can sit with the computer and monitor them for a full day, so there are no evil suprises.

    Not that I ever stop monitoring them (I'm a stats junkie) but it's most important when you begin.

  5. #5
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    As I have just started out, my budget remains around the range of $15 to $25 per day but most of the time, because of my low PPC, it doesn't even reach that high. Increasing PPC for ads does not necessary mean increase in conversion rate, though the traffic will increase. I am experimenting each day with various options, cost, traffic and returns. Targeted traffic is extremely important, and it almost becomes an art (which after months, I am nowhere near) to get the right combination of keywords, ads, products and conversions.

  6. #6
    Member nLoBushwack's Avatar
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    Here's some pointers for what they are worth, if you do decide to run a Google campaign:

    1) Use very specific keywords. The more general the keyword, the more clicks you get but the conversion % is lower. More specific keywords, such as 'green contemporary computer chair' have very low impressions, but average click thru rate and high conv. % (which means your ROI (return on investment... ((Revenue - Cost)/ Cost) ) is better with a low budget). People that search for more specific items like the example above are much further along in the buying process than someone who searches 'chair', which has high impressions and clicks, but not as many sales (lower ROI)

    2) Claims for 'discount' or 'overstock' or 'sale' in the description do much better for CTR. A 'free shipping' claim has high CTR also.

    3) The merchant's name has VERY high ROI. Someone that searches for 'Wal-Mart' is probably going to buy something. Be careful, though, that you do not breach your affiliate agreement by bidding these words. Google has stated that it is not copy write infringement to bid trademark names. But if you are an affiliate, the parent company may forbid it (and drop you from the program if you are caught). For example, if you sell Zappos shoes you could bid the word 'Nike'. But if you sold Nike shoes, Nike may want full rights to bidding that keyword.

    4) Coupon offers are VERY high ROI. People looking for coupons for companies or products are much further in the buying process.

    5) Track your clicks! You don't have to know techy stuff to do this well. If you bid for 'black running shoes', land them on a shoe category page and watch your shoe sales. Then you can determine how much it costs to make a sale. (This also works with newsletter signups).

    6) Google has an algorithm for its’ positioning, so it's not based entirely on your bid price. If you bid $.25 and have high CTR (click through rate) then you could actually appear higher on the page than someone that has bid $.35 and has low CTR. This is Google’s way of showing the most relevant results possible to the searcher. Therefore, when you first place your bids, oil the pump a little by clicking on your own ads to get them running with a high CTR.

    7) ALWAYS set your max daily budget. That should be the first thing you do. I would suggest $20, bids around $.25 to $.30, and VERY specific keywords (3 to 4 word phrases) with good landing pages. Don't worry as much about negative keywords for now because your keywords are so specific. And the very most important aspects are tracking and landing pages, whether you use cookies or CJ interface (the Google pixel option is not an exact number at all, so don’t base your decisions solely on the pixel).

    Hope this helps!

  7. #7
    Moderator MichaelColey's Avatar
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    Excellent suggestions nLoBushwack! Just one little clarification...
    Quote Originally Posted by nLoBushwack
    1) Use very specific keywords. The more general the keyword, the more clicks you get but the conversion % is lower. More specific keywords, such as 'green contemporary computer chair' have very low impressions, but average click thru rate and high conv. % (which means your ROI (return on investment... ((Revenue - Cost)/ Cost) ) is better with a low budget).
    You also have to make sure the specific keywords accurately describe what is on the page. I can't even count how many times I've been looking for a specific product and clicked through the ads and found that the store bidding on the keywords didn't even sell the product I was looking for. Your conversion ratio for specific keywords that don't match the landing page will be very low.
    Michael Coley
    Amazing-Bargains.com
     Affiliate Tips | Merchant Best Practices | Affiliate Friendly? | Couponing | CPA Networks? | ABW Tips | Activating Affiliates
    "Education is the most powerful weapon which you can use to change the world." Nelson Mandela

  8. #8
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    Also be sure if you get a keyword list from the merchant to check it. No joke, i got one I think from an auto merchant that had "tampon" in the list. Usually I make my own keyword lists and get them as super targetted as possible. Better for conversions and usually cheaper than more general terms.

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