| Google Adwords works differently from other PPC engines, with other PPC engines, you can control your position with your bid amount, and your listing will show up all the time as long as you are not run out of budget.
However, Google Adwords works in an unique way(as always). There are two issues need to consider: - How many times your ads to be shown(This is also called Impression Rate).
- What position your ads will be listed(Current Position and Average Position).
In Google Adwords your ads position’s are determined by many factors including : Daily Budget, MaxCPC, CTR(click-thru-rate). In most cases, Daily Budget controls your Impression Rate(how many time to be shown) and MaxCPC controls your position. That means your ads are NOT showing every time.
There is a system in Google Adwords that constantly monitors for wide range of factors to estimate your "suggested budget" which is the amount required to allow your ads to be shown everytime people do a search on any keywords (within the campaign) without overdelivering the budget.
This Suggested Budget calculated using the following factors:- Number of Impression of every keyword in the Campaign, depends on how they are targeted (broad, phrase or exact)
- Applies a moderate CTR (about 2%) to come up with how many estimated clicks
- Calculates your spending using Max CPC for each keyword
- The system will calculate how much budget do you need for your ads to be showing up everytime based on the information above. This suggested budget varies from time to time depends on competitive landscape
If your actual Daily Budget is lower than Google’s Suggested Budget, your ads will not appear every time. The more Daily Budget you give to your campaign, the more often(or chance) your ads will appear.
For example: a search term "flower" may be searched 50,000 times(Impression) a day, if there are 20 advertisers are bidding on the same keyword, these 20 advertisers will sharing the "pool" of 50,000 impressions. Depends on your Daily Budget and Max CPC, your ads may only show 1,000 times(your Impression Rate is 2%) during 24 hours. That means your ads will not show up during other 49,000 searches. That was the reason why your ads are not showing when you are searching on Google. If you want to increase your Impression Rate, you need to increase your Daily Budget or Max CPC.
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