How to Set Up Google AdWords: Step 4
Create your first campaign: Bidding and Budget
You’ve just decided where your ads are going, now it’s time to put some money behind it.
Bidding Options
By default, Google suggests focusing on clicks – with a choice to create a manual bid for clicks, or automatic. Manual bidding simply means that you want to manually tell Google how much you’re willing to pay for any given keyword. By using automatic bidding, Google will choose how much your bid will be – but don’t worry you get to put a ceiling on that amount with the bid limit.
You also have an option to base bids on conversions. This might be a good option for an Ecommerce site – as conversions are black and white: to buy or not to buy. You can count whatever you’d like as a conversion: signing up for your email newsletter, filling out your contact form, subscribing to your feed, downloading your white paper…you get the idea. (Notice you have to set up conversion tracking – by inserting a code not unlike that for Google Analytics.)
Budget
This one is pretty straight forward: how much are you willing to spend for AdWords (per day)? Like every other option we’re setting up here, you can change this at anytime. And, don’t worry, if Google thinks you should be spending more based on “missed opportunities”, they won’t hesitate to tell you. 
Position Preference
That’s right, you can choose where your ad shows up! (You’ll just have to pay for it.)
Unless you have a specific need to show up in the #1 spot, or maybe you want to be down around #3 to save costs (and you know you’ll convert just as well there), then I would suggest leaving this option “off”.
Delivery Method
Have a product in short supply and want to sell it fast? Or do you have a bottomless budget? Go ahead and show your ad(s) quickly over time. Otherwise, show them evenly throughout the day.
Congratulations!
You’ve successfully set up your bids and budget. Now that the money piece is (partially) out of the way, tomorrow we’ll go over some advanced settings.
Nicki Hicks
Budgeting isn’t just for accountants
Tags: AdWords