Budgets and Bidding

One of the most important aspects of running an AdWords campaign is knowing you budget and setting and ad group bid. First, and budget is and amount of money that has been set to spend on each campaign each day. It is basically the average amount that will be spent each day. There is also a maximum cpc (cost-per-click) that signifies the maximum amount of money one is willing to spend per click on the ad. This bid amount can directly influence the amount of clicks. With a higher bid, comes more traffic to the ad.

There are seven important steps to remember when setting a bid and budget for a new campaign. The steps are as follows:

1. Sign into you AdWords account
2. Click "Campaign
3. Click "All campaigns" and then "+ Campaign". Now choose a campaign type
4. Select a strategy from "Bid strategy"
5. Enter the largest amount of money you are willing to pay on average each month in "Budget"
6. Click "Save and Continue"
7. Edit the bid strategy at any time by clicking "Settings"

In conclusion, there are two types of bidding: Manual bidding and Automatic bidding. Manual bidding is the default strategy. Automatic bidding only requires setting a daily budget. This is an options for those who have a lack of time or a new to Google AdWords 

Below is a helpful video that talks for about budgets and bidding.