Does Google eat ALL ad spend money?

12 replies
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Complete newbie question... I haven't used PPC yet. Soon will.

Just wondering...
Let's say I allocate a budget of $5 on something.
Let's say it's mortgages - I heard this is one of the most expensive PPC.
Let's assume the average PPC for mortgages is something crazy like $50.

So... realistically, I shouldn't get a chance at all??
Will Google 'use' my $5?

#eat #google #money #spend
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  • Profile picture of the author LucidWebMarketing
    You are forgetting (understandable since you never used) that you also set a maximum bid. Budget and bid are two different things.

    I have never set a budget of $5 and a higher bid. First because it's illogical and second because I would set a budget according to expectations.

    In your scenario - a $5 budget where a single click can be much more than that - I believe Google would try to serve your ads. It would depend on the maximum bid you set. Even if you set it at $5 or more, you are likely to get a click every day, even with a poor Quality Score, another thing you are not aware of. Your ad would show more than likely at the bottom of the page, show very infrequently (impression share) due to the budget-bid settings and QS figures in that too.

    Short answer, yes, your $5 will be used up.
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  • Profile picture of the author King Manu
    Google will use every opportunity to use your $5, no matter how irrelevant is the search compared to the keywords.

    Because I am guessing you are going to use Broad Match.

    On Exact Match, you have no chance at getting displayed among people paying 10x your bid.
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  • Profile picture of the author Wallet Wing
    No doubt, Google AdWords is too expensive but it takes the real instant conversion of your website. It depends upon your keywords and your optimization strategy. The quality score and ads score plays an important role when it comes to saving money,
    If you have a small budget then you can try seo or smo to get traffic and conversion for your website.
    SEO is a slow and longtime process to improve the traffic as well as ranking
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  • Profile picture of the author jefrin adams
    Its very expensive
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  • Profile picture of the author starengine
    Thanks for the replies guys.
    Very educational.
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  • Profile picture of the author Medon
    I agree with the contributor that Google Adword is expensive. But it somehow guarantees results. It may not be ideal for start-ups or small scale businesses. They can rely on SMO and SEO which are slow and requires hard work and patience if you want to get results.
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  • Profile picture of the author HarrieB
    From whatever I have seen and work on, u require money to spend on advertising to go to the next level. In my case, I was already making good passive income from my android apps but I decided to run ads to get extra installs and after a few days my income skyrocketed plus my retention rate has gone up a little.

    At the end of the day, even if u put $5 or $10 bid on a high competiting keyword, google will still show ur ad and ur less likely to get conversions.
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  • Profile picture of the author Huenelde
    Google Adword is quite expensive, but it turns out in the end a great result. Any worthy advertising will raise your rating. Just one will do it quickly, but on the other it takes time.
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  • Profile picture of the author Igor Vst28
    This depends on the quality of your ads and campaign, and your product also.

    CPC can vary a lot depending on the mentioned, so you can sometimes achieve very low price for clicks.

    But, of course, if estimated bid (in case of for ex. very high competition) is around 50 $, sure you don't have a chance if you set bid 10x lower (5 $).

    So, if you're competing for so high-priced product like mortgages, of course you cant do it with a budget for pizza delivery campaign
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  • Profile picture of the author Blakers1
    Average PPC is just's an average. If any of my campaigns ever get close to the average in the first few days, I am going to be taking a look to see what optimization steps I missed because something is wrong. (In most cases)

    Google Ads are all about relevancy and the more relevant to search intent you are compared to the competition, the lower you'll pay.

    I'd suggest using a 2 word modified broad match to begin with and use it to farm your search terms for 3 and 4 word phrases that are relevant.

    Start with +mortgage +plano

    Then identify and add groups for the following:
    +mortgage +broker +plano
    +va +mortgage +plano
    +fha +mortgage +plano

    Each time you identify one of those 3-4 word phrases, it should get its own ad group and the new word should be added as a negative to your main 2 word group and all other groups so that you are not bidding against yourself.

    It takes a lot of time and analysis but if you follow those steps, you'll drive your CPC down over time.

    Blake Akers

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  • Profile picture of the author Wrario
    Google will always try their best to use all of your budget.
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