The keyword ads show up on search engines and various partner content sites. You may be able to picture them on the side of your search results listed as “sponsored links” or as “ads by Google.”
When you buy keyword ads, you only pay when someone clicks through to your ad (or pay per click). People bid on how much they will pay so the price is set by the market. The lowest bid allowed is $.10 per click. The highest bid I’ve seen is $12.00 per click. Usually they range from $.25-$1.50 per click.
Yahoo/Overture (which brokers ads for a several search engines) lets you bid on terms and set daily and monthly limits. So you might set a limit of $180 a month or $6 a day. That is the limit we set for one account. So, imagine our surprise when we chocked up $300 in one day!
I was pleased to find out in their small print that if you go more than 15% over a budge amount you may be in for a refund. Well, we contacted them and they agreed to refund all but $6 of $300 we spent that day.
So, the lesson learned is that Overture has a refund policy IF you have set a daily and monthly budget and they will stand by their word. I have learned in past lessons that budget limits are always a good idea – if only to stop a high clicking streak. Too much of a good thing is still too much.