Hi,
As csmith said, you can set a daily budget... You also set a Maximum Cost Per Click (CPC) that you want to pay.. it won't go over that, but it can go below that. For instance, if you set your CPC at $0.25 Google might only charge you 10 or 15 cents... it's widely dependent on the keywords you're bidding on and other factors.........
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Originally Posted by webfreak
If I'm not mistaken, I believe you bid on keywords. Your bid is the price you are willing to pay when someone clicks your link. Higher the bid, the more prominent and often your ad is shown.
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Your rank is based on CPC and the Quality Score.... the Quality Score is determined by your Click Through Rate (CTR), the Relevance of your Ad Text, historical keyword performance and some other secret relevancy factors.
So actually how much you bid is only part of the formula for ranking in the results... if you have a way better CTR then your competition then CPC becomes less of a factor...
But as I said above, it's widely dependent on the market you are targeting...
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