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Please Explain Daily Budget System

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# 1
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"Remember that you can exceed your daily budget by 20% in a given day. 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."

 

What does this sentence mean??? Will Google not charge us for the increased budget??

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Accepted by topic author RichaAgarwal
September 2015

Re: Please Explain Daily Budget System

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# 2
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Hi RichaAgarwal,

 

Welcome 

 

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.

 

If your budget is US$10 per day throughout an entire month, the maximum you'd be charged is US$304 (US$10 daily budget x 30.4 average days per month) in that billing cycle.

 

Hope this helps,

 

Thanks,

 

View solution in original post

Marked as Best Answer.
Solution
Accepted by topic author RichaAgarwal
September 2015

Re: Please Explain Daily Budget System

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# 2
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Hi RichaAgarwal,

 

Welcome 

 

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.

 

If your budget is US$10 per day throughout an entire month, the maximum you'd be charged is US$304 (US$10 daily budget x 30.4 average days per month) in that billing cycle.

 

Hope this helps,

 

Thanks,

 

Re: Please Explain Daily Budget System

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# 3
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Hi RichaAgarwal,

 

shuva is completely right there. Just an extra note to add: On certain days you may underspend your daily budget due to a lack of searches on your keywords, for example. This means the system may then overspend on your daily budget the next day by up to 20% if there are more searches than usual. We will try ensure you are not missing potential clicks on busy days, whilst also keeping within your budget limits. And as you mentioned earlier, you are never charged more than the average number of days in a month (roughly 30.4) times your daily budget.

 

For anyone who would like to see more information on this, the article RichaAgarwal was referring to can be found here.

 

Thanks,

 

Natasha

Re: Please Explain Daily Budget System

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# 4
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I am trying to understand this but I am very confused. Does this advertising cost money to run on a blog? It's taking about "charges" and "budgets" are we paying anything to use this? 

Re: Please Explain Daily Budget System

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# 5
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Hi Erica D,

 

Adwords is a paid service, in that you pay to have your ad appear on Google search results or on other people's websites. When people click on your ad, you will be charged as they will come through to your website.

 

If you are referring to putting ads on your own blog for your visitors to see, you would need to check out Adsense. This is where you can receive money when people click on the ads that you are hosting on your site. You can find out more about this here.

 

Hope this helps clear things up a bit!

 

Natasha