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.
- So Joe’s monthly budget becomes a daily budget:
- $100 is 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 can pay 4 clicks per day ($0.69 x 4 = $2.76)
What happens after the fourth click?
Joe’s daily budget is depleted and Google restricts the frequency of his ads. Although Joe’s ads are active, they are not appearing to viewers as often as they could.
What happens at the end of the month?
At the end of the month, the clicks are totaled and deducted from his budget (which is commonly referred to as “Google Credits”).
- Joe received 120 clicks x $0.69/click = $82.80
- The $17.20 leftover ($100 - $82.80) rolls over as “adwords credits” towards the next month.