Google Adwords

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For new businesses and websites, it can take months to see results from SEO. This perceived “penalty” used to be referred to as the Google sandbox effect – people assumed Google was intentionally filtering new websites out of the results. More likely the problem is that competition is fierce and it takes time for a website to “prove” itself and earn authority and links.

AdWords is a great workaround for new businesses because you don’t have to wait around so long to see results. While working on your site’s SEO, you can put resources into an AdWords campaign and start getting impressions and clicks immediately. Because it’s so speedy, it’s also a good way to test whether a given keyword or audience is worth pursing via organic search – if it converts well in AdWords, you can deduce that it’s worth trying to rank for in SEO and build out your content in that area.

What Do Pay Per Click Ads Look Like?

Pay Per Click ads will appear always on the first page of Google, on the right side of the screen and also on the top, like the graphic below shows:


How Does Google Charge For Their Service?

When setting up your payment information for AdWords, there are two things to keep in mind: Your payment setting and your payment method.

  • How you pay (payment setting): This is how you make your payments. Your choices are:
      • Automatic payments: You’re automatically charged after your ads run, either 30 days after your last automatic charge or when you reach a preset amount (known as your threshold), whichever comes first. You can also make payments at any time to control your costs.
    • Manual payments: Pay when you want for future costs. With this setting, you make a payment before your ads run. Then, as your ads run and you accrue costs, the credit from your payment will decrease. When your payment is used up, your ads will stop running.

Automatic payments is a payment setting in AdWords. Using this setting, you first accrue advertising costs, then have those costs automatically charged to your primary payment method.

To begin, you provide your billing information once, and payments are automatically processed so you don’t have to worry that your ads will stop running if you forget to make a payment.

When you’re charged

On automatic payments, we charge you for your advertising costs 30 days after your last automatic charge, or whenever your account reaches a predetermined amount known as your billing threshold — whichever comes first.

Threshold and 30-day payment boundaries

How the billing threshold works

Your billing threshold is initially set at a certain amount. Each time your account hits its threshold before the 30-day billing cycle has ended, your threshold increases, up to the highest threshold. Thresholds vary per account, country, and currency, so be sure to check in your account to see what your current threshold is. Note that the amount billed may be slightly over the threshold if your account accrues costs quickly.

Say you’re just starting out with your AdWords account, and your initial threshold is $50. If you accrue $49 in costs within 30 days, you’ll be charged after 30 days, and your threshold will stay at $50 in the next billing cycle.

Payment at day 30

However, if you accrue $50 in costs within the 30-day billing cycle:

  • You’ll be charged immediately.
  • Your threshold will increase to the next threshold amount, for example, $200.
  • A new 30-day billing cycle will begin immediately.

Payment at Threshold

Let’s say an advertiser named Alan opens an AdWords account with a $50 threshold, and starts accruing costs on Oct. 1. Here’s how he’ll be charged, and how his threshold will change:

  • On October 5, Alan reaches his initial billing threshold of $50. At that time, we charge him for his costs (which might be slightly more than the billing threshold if he accrued costs quickly). We increase Alan’s billing threshold to $200. A new billing cycle begins.
  • On October 23, Alan reaches his new billing threshold of $200, triggering AdWords to charge him for costs accrued. Google again raises his billing threshold to $350, and initiates a new billing cycle.
  • On November 20, Alan accrues more than $350 in charges. Google bills him and raises his billing threshold to $500.
  • Alan’s next charge is initiated on December 20, which is 30 days after his last automatic charge. If he accrued $500 in advertising costs before December 20, an automatic charge would have been initiated sooner.

Still have questions? Feel free to get in touch with us and we’ll answer them for you!

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