Google Can Now Spend Twice Your Daily Budget in AdWords
“Google announced it will be able to spend up to twice the average daily budget.”
What does this new update mean?
Website traffic is based on services or products, timing & ocean. If we analyze the Paid & Organic traffic of any website through analytics or other tools, we will find that it has ups & downs based on days. During festival seasons it’s too high & during the holidays season it’s too low. It alldepends on timing.
This new update is dedicated to these types of situations. Google will now be able to use twice your average daily budget based on these conditions. For example, iffor any particular day you are getting high click and conversion volume/conversion rate then Google will automatically raise your daily budget limit for those days& you will get the benefits of timing.
Benefits of budget update:
You can see in the above screen shot theupdatenotification from the Google support page. Essentially this is saying thatGoogle will automatically adjust your budget based on traffic volume whether high or low while maintaining your monthly budget limit. Due to this update, your adcould be visible too often as compare to normal days based on historical data & timing.
Over delivery and your daily budget
It begs the question that if Google can spend over your budget (twice the daily budget) then how much will it affect the monthly budget? What amount to set for the daily budget?
Google’s answer is that “over a month-long billing cycle, you won’t be charged more than your daily budget would’ve allowed for over 30.4 days.”
Note:30.4 is the average number of days in a month (365 days in a year / 12 months = 30.417). Google multiplies your daily budget by this number so we know what your budget should be over the course of a month.
We can understand this logic here by example:
Let’s say you set your budget at $5 a day and your billing cycle is 30 days. Over the course of the month, you notice that your charges vary. Some days you’re charged $2, on others you’re charged $10. But at the end of the month, your charges won’t exceed $152 (that’s 30.4 multiplied by your $5 budget). So even though your campaign costs tipped above and fell below your $5 budget from day to day, at the end of the month, you’re still charged no more than what you budgeted.
Our conclusion is that although daily traffic costs can vary up & down but at the end of month, you will see your costs within the limits that you had set and expected.