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Advertising on Google: The High Performance Cookbook by Kristina Cutura

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Determining the right billing option for your needs

AdWords offers three main options to pay for ads. Advertisers can choose to pay before ads run (manual payments) or after clicks are accrued (automatic payments). Advertisers can also apply for invoicing to get a line of credit from Google—an option typically used by large advertisers.

Getting ready

The following table explains the three payment options in more detail and for whom each option is most appropriate:

How you pay

Billing option

How it works

Manual payments

Advertisers prepay and add funds manually to AdWords before ads run.

Automatic payments

AdWords charges you after ads run. You are billed either 30 days after your last payment or when you reach your next billing threshold. ...

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