The average daily amount must be sufficient to allow optimal bidding of keywords, as this is a real-time auction system, where you are competing with the other companies bidding for the same audience’s attention and the coveted top of page positioning. The average daily amount determined by the cost-per-click (CPC) will vary based on the competitiveness of the keyword or search term.
Pay-per-click advertising is a tactic used by top tier search engines like Google and Bing to get prospects/buyers to your website. It is not only efficient, but also a way to drive traffic to the website and generate leads.
You buy a keyword or keyword phrase that a prospect is likely to type into a search engine. When they do, your website will be featured at the top (or depending on budget, bottom of page one) of the search engine results page. You pay the search engine every time the ad is clicked on.
Pay-per-click campaigns have three components of cost, a one-time setup fee, the monthly Ad budget, and a monthly management fee.
The monthly Ad budget is usually capped at an agreed to monthly budget, and then that amount is divided by 30 to establish an average daily budget.