Google is going to change the way daily AdWords budgets are calculated, and it will affect everybody. It could even end up doubling your average daily spend. If you’re concerned about your how your monthly AdWords spend will change, read on.
At the start of October, Google released an announcement notifying advertisers of a fundamental change to the way AdWords budgets. The news was sent out via Twitter and in users’ accounts, and it caused a few alarm bells to ring.[image-1]
The tweet was short and got straight to the point: “To help you hit your advertising goals, your campaigns can now spend up to twice your average daily budget.”
People immediately took to Twitter to express their outrage. How, they asked, could Google do such a thing without consulting them first? One thing was clear: the internet wasn’t happy.[image-2]
Unfortunately for some of the people who launched strongly-worded attacks on Google in response to the tweet, they didn’t read the small print, which was, in this case, a link to the full written announcement online.
If they had, they would have quickly realised that the news didn’t mean that Google would be throwing their AdWords daily budget out of the window altogether. In other words, advertisers would not be at risk of exceeding their monthly limit.
“Keep in mind,” explained Google, “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.”[image-3]
How will these changes affect you?
Don’t worry – your AdWords spend won’t spiral out of control. However, because the change is designed to maximise your results by increasing your daily ad spend you may start to see sizable fluctuations in daily costs – especially on days when traffic is high. Any overspend or overdelivery will be balanced out throughout the rest of the month and if for any reason Google goes over your monthly budget, you will be credited the cost back.
Do you have more questions about AdWords?