Google AdWords Can Now Spend Daily Budget x2
If you're confused by Google’s latest AdWords update, or if you are unsure about how it will affect your budget, you are not alone. The majority of advertisers are unsure about what this update means for the future, and uncertainty is always met with skepticism. Why did Google implement this new update in the first place?
What is this New Update?
Google announced on Oct. 4 that they can help you meet your advertising goals by spending twice your average daily budget on select days of the month. Don’t worry, your monthly budget spending will not increase because of this. It simply means that your daily budget will be doubled on some days and less than average on others to balance it out.
Here is what Google said:
“Starting October 4, 2017, campaigns will be able to spend up to twice the average daily budget to help you reach your advertising goals, like clicks and conversions.
On days with lots of high quality traffic, your costs could be up to 2 times your daily budget. This spending is balanced by days when your spend is below your daily budget.
Keep in mind, you won’t be charged more than your monthly charging limit: the average number of days in a month (30.4) multiplied by your average daily budget.”
Components of Google’s Update
- It accounts for daily variations in search traffic – if your ad does not get many results due to low traffic one day, Google will make your ad appear more when traffic is high.
- If a campaign goes over the maximum monthly budget, Google will credit advertisers with overdelivery charges at the end of the month.
- Advertisers are responsible for paying any overdelivery charges if their campaigns do not run for a full month.
- It is not optional, and there is no way to opt out.
What are the Possible Implications?
The update has not been in place long enough yet to really know whether or not it will have a positive or negative effect on advertisers and their clients. However, we can analyze various scenarios that could potentially result from this daily budget change.
1) Full-month Campaign, Limited Daily Budget
This is the easiest and most common scenario. If the campaign spends its daily budget every day for the month, that is how much the advertiser pays at the end of the month. If the daily budget overspends on several days, it will eventually even out to the monthly budget limit, and advertisers will not experience any overdelivery charges.
2) Full-month Campaign, Unlimited Daily Budget
As with the limited budget, Google will handle overdelivery charges above twice the daily budget in this scenario. Also, if your campaign isn’t limited by budget, then your monthly spending will remain the same. There are no changes to how your budget is spent for these campaigns, according to Google.
Thoughts from Industry Experts
There has already been a mass amount of chatter and concern on Google’s discussion boards and comments sections about this new update. The feedback has been very diverse – some are excited while others feel quite differently. One satisfied advertiser, David Szetela of FMB Media, said, “I’m happy about the change. All of my clients require management to a monthly budget target and don’t care about natural fluctuations in daily spend. This change means increased high-quality traffic is practically guaranteed. What’s not to like?!?”
One of the not-so-happy advertisers, Matt Van Wagner of Find Me Faster, said, “That’s insane. It means, without warning, that advertisers who pay attention to day of week budgeting constraints, and who manage monthly targets in a disciplined way will have to rethink and retool their processes. What I object to most is timing of change – advertisers had zero notice. What kind of business partner does that to its loyal customers?”
It will be interesting to see how this update will continue to develop and affect the opinions of millions of advertisers and their clients. For more information about Google AdWords, please visit our website: www.internetmarketingatlanta.org.