PPC Budgets vs. Bids: What’s the Difference?

Budgets and bids – they seem identical, right? If I have a larger budget, I should inevitably be more competitive, win in the ad auction more often, and achieve higher KPI metrics. If I have a smaller budget? Simple – my account wouldn’t perform as well. Why would an account with a $5000 monthly budget perform worse than one with $1000 in the same industry, right?

Well, not exactly. And, folks, that is precisely what I want to talk about today. I’ll explain why budgets and bids are not the same, why you can’t depend on a bigger budget to carry your account, and how your bids can help improve your account performance – regardless of how big or small your budget may be.

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