How to avoid overspending your daily budget in Google Ads?

How to avoid overspending your daily budget on Google Ads Contextual advertising

Google AdWords has several campaign budget limits – monthly and daily. If overspending is unacceptable in the first case, then going over your daily budget in Google AdWords serves a purpose.

With the help of the overspending tool, the service is able to balance the activity of an advertising campaign when, for one reason or another, traffic fluctuations occur. The use of campaign funds throughout the month is aimed at displaying advertising offers at the most successful periods of time and reducing the fees for impressions during periods when customer activity is low.

Why is it possible that my Google AdWords daily budget will be exceeded?

AdWords Daily Budget

At a constant monthly cost, the Google AdWords budget overrun per day is determined by the increased volume of search traffic. For example, user activity may change depending on seasonality, location, holidays and weekends.

Redistribution of funds, depending on the indicators of user activity, allows you to increase the frequency of broadcasting contextual advertising on the most favorable days and reduce it when user interest is minimal.

Can the monthly budget be exceeded?

The Google AdWords advertising budget can be overspent daily by up to 100%, but despite this, the monthly planned spending cannot be exceeded. The costs are differentiated in such a way that on one day they are, for example, 10 dollars, the next 15, then 12. But in a month in total they will not exceed 304 dollars. This calculation does not apply to situations where the advertising campaign was interrupted or suspended for a month.

Important! In some cases, the service may experience an excess of the monthly limit, then a credit adjustment occurs in the account. This means that an overrun has occurred, but the advertiser does not have to pay for it. Incoming corrections are tracked in the personal account of the service.

How to avoid overspending your daily budget in Google Ads?

Daily budget overrun

If you, like many other advertisers, are interested in the question “how to avoid exceeding the daily budget in AdWords?”, we recommend that you familiarize yourself with the following methods:

  1. Daily budget reduction. An effective method in case of irregular deposits to the account and lack of reference to the total expenses during the month.
  2. Checking and changing the method of displaying contextual advertising. In the tab of the selected campaign “Daily budget” there is a parameter “Display method”. There are two options to choose from: standard and accelerated. In the first case, advertising is displayed to users evenly throughout the day, in the second case, in the shortest possible time. The first method allows you to significantly reduce costs, which entails a decrease in the probability of exceeding;
  3. Click cost reduction. Exceeding the limits can also be avoided by changing the bids of the advertising campaign downwards. So ads will be shown in lower positions, but the number of transitions in the future will be the same. The cost per click should not be too low. When adjusting rates, always focus on competitors;
  4. Setting rates automatically. The benefit of automating pricing is that it defaults to a standard ad delivery method;
  5. Using the recommended budget feature. When the advertising campaign limit is below the recommended limit, the service assigns it the “Budget limited” status. This status is fraught with a decrease in traffic and the loss of potential customers. To change the situation, Google prompts the user to use recommendations that improve the effectiveness of the campaign, which indicate how much to change the daily limit, as well as the predicted number of clicks and costs. To use this feature, you need to go to a campaign with this status, click on the “View budgets” icon, familiarize yourself with the proposed optimization options, select one of them or set your daily spending amount;
  6. Using scripts. This is a specific action plan aimed at pausing the campaign when the planned costs are exceeded.

Important! Daily exceeding of the limits indicates that the limit on the advertising campaign is set too low, and it is desirable to increase it.

Popular Questions

  • No, Google Ads allows you to offset ad overspending on a particular day in savings on other days. This does not affect the maximum amount of spending per month, you will not have to pay anything extra.
  • Changes in traffic during the day, expenses in the previous days and other factors. Overspending usually occurs on days when a higher number of conversions and clicks is predicted. The number of days when expenses are exceeded often remains constant.
  • No, the distribution algorithm is configured in such a way that, taking into account the latest expenses, the budget is constantly optimized and distributed over the entire month (while adjusting to daily traffic changes).
  • Recalculation occurs on the day the daily spend changes. The final amount will be the sum of the funds already spent before and future changed expenses, based on the new settings. For example, if the cost for the company before the 17th of the month (which has 31 days) was $4 per day, and then the user changed the amount to $6, then at the end of the month the maximum price will be: (4 * 17) + (6 * (31 – 17)) = 152 dollars.
  • This option cannot be deselected. Exceeding the daily limit is a built-in Adwords tool that applies to all campaigns and allows you to increase their effectiveness.
  • No, this feature is not available in AdWords. But the user can only calculate it. It will be equal to the daily budget multiplied by the average number of days in a month (30.4).
Сергей Шевченко
Сергей Шевченко
Rate author
Adwservice
Add a comment

Sergey Shevchenko Google Logist GoogleLogist
GoogleLogist
Google Ads 90 Days Package, will help make your advertising campaign not only profitable, but also increase sales from it