I get asked this same question a lot, and it’s a great question.

Same question, same answer?

No, the answer depends entirely on you.

That’s right, you decide how much you spend when you set your Google Adwords daily budget. Let’s say you have a budget of $100 a day to spend on your ads then Google will never rack up a bill for you of 300 bucks in one day. They might go a little over your daily budget once in a while, but if you’ve set your daily budget at $100 they’ll cap your months bill at $3,040.

Daily budget x 30.4 days = max monthly spend

What happens when your daily budget is reached?

They stop showing your ads. If you get a lot of clicks by 3pm in the afternoon and your daily budget is fully depleted, Google will simply stop giving your ads impressions at 3.01pm. No ads showing, then there’s no chance of getting clicks and adding cost.

The cost you pay-per-click (CPC) when your ads do show depends upon your competition. Google AdWords is an auction and therefore the more competition there is the higher the cost-per-click price is driven. Most of the time the highest bidder wins, but not always.

If you create relevant and compelling ads that more people click on, build website landing pages that engage and keep visitors on your site longer then the chances are you’ll get clicks cheaper than your competitors. Google reward advertisers who are more relevant and engaging with lower CPC’s (cost-per-clicks) as better advertising improves the Google user experience.

At Click Jam we help business get more from their budget by increasing clicks and reducing cost. To get your Google AdWords campaign started check out our campaign management services here.