The Four Benefits of Google Adwords - Number Two Cost

Google constantly talks about the four benefits of their Adwords programme as reach, cost, timing and flexibility, Over the course of four posts I would like to explain in detail what the four benefits are.

In this post I discuss cost.

The cost benefits of adwords are no minimum spend, the advertiser sets a daily budget, the ad publisher sets the cost per click and the availability of free tracking and management tools. All of these areas are detailed below.

The fact there is no minimum spend is very useful to the small or medium sized company dipping their toe into web marketing and at the other exteme it is an excellent tool for large corporations to test out new keywords without having to invest large sums of money into the process. A company can decide to spend five pounds, three dollars of a few euros, find that Adwords is not for them and retreat back to their traditional advertising methods.

The ability to set a daily budget is very important for many advertisers. It allows them to control absolutely what they will spend over a given month. If a company sets their dailhy budget to be $50, the total cost for that month will be the number of days in the month mulitiplied by fifty. Nothing more and probably nothing less as Google will take your underspend for day x and add it to your daily budget for day y.

Using the cost per click model, and advertiser is able to set the value of their advertising. They will only pay the amount they specify. If they value a click at 50 pence then a click will cost no more than 50 pence. It is often the case that Google's technology will reduce the cost of the click to 1 unit above the next competitors bid.

The final cost benefit Google provides are the additional (and in my opinion excellent) tools for tracking namely Analytics. Other companies would charge a premium for these types of services, Ebay jumps to mind for their extended subscription services, but Google gives them away free to improve the quality of the advertising experience.

In conclusion Adwords users have greate control over the cost of their campaigns, something usually not true with other forms of advertising.
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