NextAdvisor guide to using web hosting ad credits

Posted by kent on November 19th, 2009

If you've signed up for web hosting, or spent any time looking into it, you've probably noticed that just about everyone offers Google and/or Yahoo! ad credits. Usually you're offered $50 worth of the former, and sometimes $25 worth of the latter. Just what do those credits buy you, and how do you use them?

Let's look at AdWords. Most people have seen AdWords in action, even if they don't know the program by name. AdWords is a pay-per-click ad program that allows site owners to promote their sites right next to Google search results.

You can use web hosting AdWords credits to bid on keywords and advertise your own site (you cannot use it to pay for the $5.00 sign-up fee, however).

So, what will $50 buy you? You can bid as low as one cent for a keyword (though you'll probably be quickly outbid) or as high as you want. That bid amount represents the most you will pay per click on your ad. Like an eBay auction, you may not end up paying your maximum bid, but you should be prepared to pay that amount per click that you get. If you have the fairly standard $50 ad credit, it can theoretically cover:

50 clicks for a $1.00 bid

1 click for a $50.00 bid

1,000 clicks for a $.05 bid

This is a simplification, of course (and we don't recommend $50 bids). You can pay less if there are lower bids than yours. How much you'll actually need to bid depends on your keyword(s) and how high on the page you'd like your ad to appear. Be aware that your ad credit is a not a hard spending limit. If you don't want to spend more than $50, you'll need to monitor your account carefully. AdWords will let you set daily limits, but not a total budget cap.

That's basically how bidding works. Here's how to redeem an AdWords coupon, if one came with your web hosting:

Step 1: Find your code

This will differ depending on your web host, but most users will find this in their control panel. Here we used HostGator, since it uses the widely used cPanel. You'll find it under Marketing Services:

You should then see a page like the one below. Copy the code (here represented by a series of X's), and follow the link to Google's AdWords page.

Step 2: Register for AdWords

If you don't already have a basic Google account (such as a Gmail account), you'll have to create one. Then you'll have to create an AdWords account:

After you create your account, follow the steps of setting your time zone and currency, and verifying your account. Once you've verified your account, you can log in and get to work.

Step 3: Enter your code

In order to use your ad credits, click the "Billing" tab.

This is where you'll have to input payment information for the aforementioned $5.00 setup fee,  as well as any spending you might do beyond your ad credit (which Google hopes you'll do). After that, click the link next to  "Do you have a promotional code?" and enter the code in the box that appears.

Step 4: Create and Bid

We won't go through the process of making an ad, since Google offers pretty good documentation on how to do that. Beyond your $5.00 set-up fee, you don't have much to lose. If you use your web site to sell something, there's no reason not to try it out. Just make sure you keep track of how much you're spending through your AdWords control panel on Google. Also, there may be an expiration date depending on your web host's offer, so check that too before you begin.