One mistake I see from a lot of new advertisers and some experienced advertisers is setting a budget that’s too low.
It should be noted that AdWords isn’t always cheap. In some industries you’re going to see cost per click upwards $50 to $100 per click, in others it might be $.25 to a dollar. You’re certainly not going to see clicks for a penny.
If you think you are going to get by spending $50 or $100 a month on AdWords you’re wrong. I can’t think of one industry where this budget would get you anywhere.
It really depends on the industry, some industries you may get away with spending $300-$500 a month, others you might need to spend tens of thousands. But in general you need to make sure you have enough of a budget to get enough traffic to really see what’s going on. And you shouldn’t expect to make a profit right away. It often takes time to fine tune your campaign and find out what works and what doesn’t, and you simply can’t do this if your budget is too low.
So if you think you’re ready to start AdWords, do a really thorough analysis of your budget and figure out if it’s really going to get you anywhere. If all you have to spend is $200, that $200 will probably be better spent somewhere else.