In October 2017, Google implemented changes to Google AdWords which will drastically impact the way AdWords daily budgets are used for all AdWords customers.
How Google AdWords Daily Budgets Used To Be Spent
Before the change, you could spend up to 20% more than your set daily budget in a day, but you would never spend more than your set daily budget on average over the course of a month.
For example, if your daily budget is £30 per day, you could spend up to £36 per day, but you would never spend more than £30 on average per day over the course of a month. You would also never exceed your set monthly budget (daily budget x days in the month).
What Has Google Changed About AdWords Daily Budgets?
Google AdWords has changed this so that now you can potentially spend double your daily budget in a day. This is jump in potential daily overspend from 20% to 100%.
This means on high traffic days, you could potentially spend double your set budget. Advertisers will still not spend more than their monthly limit. But this could in theory mean that monthly budgets could be spent by the 15th of the month.
Google has provided advertisers with no notice as to these changes, with changes being announced and being put into effect at the same time.
Google has said they have implemented these changes in order to enable campaigns to better reach their goals on days with high traffic. This could also mean that a substantial portion of the campaign’s monthly budget could be spent in a certain period of the month, holding the campaign back on other days and preventing a steady level of spend.
On the other hand, it is a way for Google to up the spend for advertisers and businesses that are under utilising spend on certain days of the month by setting arbitrary budget caps. By automatically increasing the level of daily spend, Google could massively increase their advertising revenue while claiming to help advertisers reach their goals.
This is a major change to the way advertising budgets are handled in the platform, and takes away spend control from the advertiser and client and gives it to Google.
Our team are currently monitoring all of our Google paid search client accounts for indications of major changes and fluctuations. At the moment we are not seeing any drastic shifts in daily spend across our accounts. If major fluctuations occur, we have robust solutions in place to ensure accounts do not spend more than their actual daily budgets.
What Does This Mean For Google AdWords PPC Managers and Businesses?
With Google both announcing and implementing the change at the same time, it gave advertisers no warning to prepare for the changes. Instead of being able to raise the change with clients, advertisers are left dealing with any potential fluctuations and explaining the change to clients at the same time.
This is another sign of the strained relationship between Google and advertisers, and a sign Google wishes to increase the automation its side in the delivery of paid media. This is a further reduction in control for the run-of-the-mill advertiser, who seems to give more and more control away to Google with every new feature and release.
Fortunately, here at Wonderful we have many measures, from Scripts to account processes that ensure your account remains firmly in our control at all times.
How Can You Limit AdWords Daily Budget Overspend Per Day?
We have been at work at possible solutions to the update to AdWords budgets focusing on a series of custom scripts for each of our clients.
It’s no use implementing a script that stops ads showing once they reach a set level of daily spend. As Google has increased this to potentially 100% more than the budget, you would merely be stating the daily budget again that you have already set, and Google has already ignored.
Instead it is a case of implementing changes that will reduce the number of impressions for each campaign and potentially the account as a whole. This would result in ads not showing for longer than you want, as a result reducing the possibility of you being charged for clicks beyond your set budget.
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