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How Does Billing Work?

When you purchase a $100 campaign, you are essentially pre-paying for advertising credits.

The cost of a click is determined by the search engine - not by SiteWit -

Let’s illustrate how Google handles your $100 payment:

Joe in Asheville buys an AdWords advertising campaign on the Google network for $100 per month.

Google spreads this monthly budget equally over 30 days to expose the ad throughout the month. Your monthly budget is converted to a daily budget

  • Joe’s daily budget is $3.33/day ($100 divided by 30 days = $3.33/day
  • $3.33 is what Joe can spend per day on clicks
  • Google (not SiteWit) charges Joe $0.69 each time a visitor clicks on his ad

Therefore, Joe's daily budget of $3.33 can pay up to 4 clicks/day ($0.69 x 4 = $2.76)

What happens after the fourth click?

Joe’s daily budget is depleted and Google restricts the display of ads so that the budget is not exceeded. Although Joe’s ads are active, they are appearing to viewers, but not on the first page of results where 92% of viewers remain.

What happens at the end of the month?

At the end of the month, the clicks are deducted from his budget (referred to as “Google Credits”). At the end of his billing cycle, Joe

  • Received 120 clicks x $0.69/click = $82.80
  • The $17.20 credit ($100 - $82.80) rolls over as “Adwords credits” towards the next month.

 

 
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