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  1. #1
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    Question Specific Question About AdWords Daily Budget
    I came across the following statement, made by Donuts, in an old thread and I was hoping that he or perhaps someone else in the know could elaborate.


    "make sure you are careful about capping your daily budget at a very small number, lots can go wrong."


    I understand that capping your daily budget will obviously limit your success, but this statement seemed more ominous than that.

    Are there other repercussions that stem from limiting your daily budget besides the obvious?

    Edit: I think I was mistaken in assuming he meant to be careful about capping the daily budget too low.

    Thank you

    - Steve
    Last edited by scm21st; September 18th, 2007 at 08:17 PM.

  2. #2
    More Cheesier Than Ever Cheesehead's Avatar
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    Well, if you spend $1000 in PPC the first month with a new merchant in an independent program so you could make $1200, but they don't pay you, you are out $1000. That's one thing that can go wrong.

    Or, you can have a PPC campaign with ton's of gawkers and no buyers. I ran a PPC for a toy and mentioned "watch the video" in my ad. Probably every kid on the internet seeing my ad clicked on it (til my budget was used up). Not one sale. Fortunately I set the budget fairly low and stopped the campaign after a day.
    This World is Not My Home
    We're gonna go inside, we're gonna go outside, inside and outside. . . And then we're gonna go go go and we're not gonna stop til we get across that goalline! Quotes from the movie Rudy, 1993

  3. #3
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    Thanks cheesehead. I actually thought he was saying to be careful NOT to cap your budget too low. I think I might have misinterpreted there.

  4. #4
    Lite On The Do, Heavy On The Nuts Donuts's Avatar
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    yep, somehow, taken out of context, i can see how it could be confusing. clarifying...

    use the daily budget to protect yourself from accidental overspending. set it low at first, until things are stabilized.

    one example, you might put in new keywords every few days and hit one with loads of traffic that doesn't convert, then log in 3 days later (after the weekend) and find out you've been creamed!

    on yahoo years ago, i didn't have a cap in place and my ad for satellite tv got picked up by a wall street journal syndicated story about digital television. i got creamed, losing tons in a single day. a reasonable daily cap would have saved me more than $1,000.

    also, there are unexpected delays at times - like editorial review of ads and banners and more - that can throw you a serious curveball, even in G (content network ads start after the editorial review process, search starts instantly - some 5 days after you think spending is stable, it can explode on you once your content distribution begins).

    if you have a cap in place, the danger is maxing out your budget and not getting all of the available traffic that you wanted. remember that tomorrow brings another opportunity to get it - but w/o a cap, your money's gone forever.

  5. #5
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    Thanks very much for the clarification Donuts.

    - Steve

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