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Daily budget overshooting

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi,

I notice that my AdWords is overshooting my daily budget. It used to be around 2-3% which was ok. However, today, I see that it has overshot by more than 10%. This is unacceptable. Why would this happen? What is the point of setting budget limits then? What is the recourse?

 

Is it because that AdWords wants to compensate for the loss of revenue due to Netbanking problem (in India) in the last few days? If so, this is certainly unethical.

 

Krishnan

1 Expert replyverified_user
1 ACCEPTED SOLUTION

Accepted Solutions
Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: Daily budget overshooting

Top Contributor
# 3
Top Contributor

Hi Krishnan,

 

This is actually a documented behavior in AdWords, Google tries to average the daily spends over a month-long period and can sometimes exceed the daily budget but as much as 20%.

 

Here are some references for you to further explore this in more detail, I'll add in some relevant quotes here too:

 

Daily budget

 

"It's possible that you'll be charged less or sometimes slightly more than your average daily budget amount on a given day. To help make sure that your ad can run a little more on days when it's very popular, your daily budget is used like an average: on any single day, you can receive up to 20% more in costs than your daily budget, but other days will be capped at a lower amount to make up for it. This is called overdelivery.

However, in a given billing period, you're never charged more than the average number of days in a month (roughly 30.4) times your daily budget. For campaigns that are paused in the middle of the month or that otherwise don't run for the full month, you may see discrepancies between your average daily budgets and your total charges. "

Why costs might exceed your daily budget

"While the cost of your campaign can be 20% above your daily budget on any given day, AdWords uses a monthly charging limit. As long as your budget is consistent for an entire month, you won't be charged more than your daily budget multiplied by the average number of days in a month, which is 365 days in a year ÷ 12 months or 30.4 days/month."

 

Hope this helps clarify things for you!

 

-Tom

 

Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’

View solution in original post

Re: Daily budget overshooting

Explorer ✭ ✭ ✭
# 2
Explorer ✭ ✭ ✭

Let us analyze your account internally, Have you change your budget at any given point within that last billing period? What I usually do to diagnose is I go on dimensions tab of the campaign, select time then day , choose the right date range then analyze on what days I actually overspent.

 

Can you try on your end and post the screenshot if you can.

More Power,
Loraine
Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: Daily budget overshooting

Top Contributor
# 3
Top Contributor

Hi Krishnan,

 

This is actually a documented behavior in AdWords, Google tries to average the daily spends over a month-long period and can sometimes exceed the daily budget but as much as 20%.

 

Here are some references for you to further explore this in more detail, I'll add in some relevant quotes here too:

 

Daily budget

 

"It's possible that you'll be charged less or sometimes slightly more than your average daily budget amount on a given day. To help make sure that your ad can run a little more on days when it's very popular, your daily budget is used like an average: on any single day, you can receive up to 20% more in costs than your daily budget, but other days will be capped at a lower amount to make up for it. This is called overdelivery.

However, in a given billing period, you're never charged more than the average number of days in a month (roughly 30.4) times your daily budget. For campaigns that are paused in the middle of the month or that otherwise don't run for the full month, you may see discrepancies between your average daily budgets and your total charges. "

Why costs might exceed your daily budget

"While the cost of your campaign can be 20% above your daily budget on any given day, AdWords uses a monthly charging limit. As long as your budget is consistent for an entire month, you won't be charged more than your daily budget multiplied by the average number of days in a month, which is 365 days in a year ÷ 12 months or 30.4 days/month."

 

Hope this helps clarify things for you!

 

-Tom

 

Tommy Sands, AdWords Top Contributor | Community Profile | Twitter | Philly Marketing Labs
Did you find any helpful responses or answers to your query? If yes, please mark it as the ‘Best Answer.’