Continued from Monday June 20.
One of the biggest issues with the setting of the maximum cost per click and daily budget is that the daily budget will not be set high enough for Google to properly serve an account.
Many times a client will have a high click cost, relatively low daily budget, see that the average position on the page for their keyword is high, but impressions are very low. The erroneous assumption is that there is simply not enough click traffic to spend the daily budget.
In reality the daily budget is too low and cannot support the ability for Google to deliver the ads. With a high click cost and low daily budget, Google simply tries too hard to meter out clicks throughout the day, the result is the program is hardly served.
Typically I will see this type of issue when in a 30 day period only $100 of clicks are served in a $900 budget. The disconnect is that the daily budget needs to be raised if the maximum click cost is set appropriately. I will also see this scenario when the account is also out of the ad auction, meaning that the daily budget may be right but the click cost is too low.
A careful review of the account and testing of various cost per click settings and daily budget settings will isolate which is the correct problem that needs to be addressed further.
In all cases, it is important for the account manager or account owner to assure that conversion tracking is enabled and being used in an AdWords account before you simply start to raise ad spend budgets and click costs. Decisions must be made on statistical documentation.
There is nothing worse for an account that to simply throw money at Google without having conversion tracking in place to assure accountability. Google will gobble up every penny you give it if you allow unfettered access to your wallet.