How costs are calculated in AdWords

Question 1

Focus on clicks on your ads.

This is known as a cost-per-click, or CPC bid. We recommend the CPC bidding method if you want to drive traffic to your

Answer 1

your website.

Question 2

Focus on impressions, or the number of times your ad shows.

This is known as a cost-per-impressions, or CPM bid. We recommend the CPM bidding method if you want to increase awareness of your brand. Note that CPM bidding is available for

Answer 2

for Display Network campaigns only.

Question 3

Focus on conversions, or when people take a specific action on your website after clicking on one of your ads.

This is known as a cost-per-acquisition, or CPA bid. We recommend the CPA bidding method for seasoned AdWords advertisers who are interested in conversions, like

Answer 3

like purchases or signups.

Question 4

Your daily budget is the amount you’re willing to spend each day, on average, for each ad campaign in your account. The size of your budget is entirely up to you and you can edit this amount whenever you like.

Recall that when you set your max CPC bid, the amount you’re charged for a click on your ad in a given auction could be less than your max. This means the amount you pay for a click on your ad - your actual CPC - will likely vary from

Answer 4

from auction to auction.

Question 5

Google may allow up to 20% more clicks in a day than your daily budget specifies. We call this

Answer 5

overdelivery.

Question 6

Overdelivery can help make up for days when traffic is slow and your ads don’t get as much

Answer 6

exposure

Question 7

How can you improve your Quality Score? Make sure that you choose high-quality keywords and create relevant ads. What are a few tips to help you get started:

Answer 7

Choose keywords that are terms or phrases your customers would use to describe your products or services. High-quality, relevant keywords can help you reach the customer you want, when you want.
Create ads that are relevant to your keywords and what you’re advertising. Relevant ads tend to earn more clicks, appear in a higher position, and bring you the most success.

Question 8

Focus on Clicks

CPC bidding gives you these choices:

Answer 8

Automatic bidding

This is the easiest way to bid. Set a daily budget and let AdWords adjust your CPC bids to bring you the most clicks possible within that budget.

Manual bidding

Take full control of your CPC bids. Manual bidding lets you set bids at the ad group level, or for individual keywords or ad placements, so you know you're bidding just what you want for the clicks that mean the most to you.