When you purchase a Google Search, Shopping, and/or Retargeting campaign, you are pre-paying for advertising credits for application to ad clicks.
What does that mean?
For a refresher, when someone searches on Google using one of your keywords, Google runs an auction among all advertisers who have chosen that keyword. The auction determines whose ads will be displayed and in what order, based on their bid and the quality of their ads.
If your ad is clicked on, you pay Google the amount you bid. If no one clicks on your ad, you don't pay anything. This is why it's called 'Cost Per Click'. You're paying for the potential customer traffic to your website or online store, based on the number of times a potential customer clicks on your ad.
The cost of a click is determined by Google, not by Kliken.
Using a $150.00 Ad Spend package, let's illustrate how the billing breaks down.
Joe buys a Google Search Ads campaign for $150 per month.
- Kliken charges a 5% management fee based on the package value. So, for a $150.00 campaign, a management fee of $7.50 is charged, and received, by Kliken.
- The remaining funds of $142.50 is considered your 'Ad Spend'.
This amount is spread equally over 30 days to expose the ad throughout the month.
- So Joe’s Ad Spend becomes a daily budget:
- $142.50 is divided by 30 days = $4.75/day
- $4.75 is what Joe can spend per day on clicks
If Google charges Joe $0.70 each time a visitor clicks on his ad, Joe can pay for 6 clicks per day ($0.70 x 6 = $4.20)
What happens after the sixth 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?
Kliken allocates these funds directly to Google, and at the end of the month completes a payment on behalf of Joe's campaign to Google based on the total cost of the clicks for the month.
- Joe received 175 clicks x $0.70/click = $122.50
- The $20 leftover ($142.50 - $122.50) rolls over as “Budget credits” towards the next month on your account.
In order to make sure your campaign stays active, Kliken will charge you every 30 days (as long as your campaign is active) to ensure your ad spend is replenished and to prevent your ads from being paused due to insufficient funds. You will also need to have an active Platform Fee in order for the campaigns to be eligible to serve.
If you would like the charges to stop - you will need to cancel your campaign.
***Please note, this example applies to other package values, and other currencies as well. ***