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Max Bid Higher Than Daily Budget?

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# 1
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We have a (perhaps unusual?) situation where we want to advertise on specific keywords, but the cost per click is really quite high -- sometimes in excess of $20 per click.

 

We still want the leads that the high-value keywords could likely provide, but we only want to spend about $300-$400 per month across all of our campaigns involving these high-value keywords...

 

Since the high-value keywords are currently spread across several campaigns (structured into well-organized SKAG campaigns), I am wondering what my options might be for controlling the actual spend across the account.  

 

It doesn't seem like you can set a ceiling on the account spend. (Seems like a campaign control only.) 

 

My initial thought is to just to LOWER THE DAILY BUDGET on the campaigns with the super-high-value keywords. Depending on the Keyword, I might set the max daily budget at $5 or possibly $10 -- but either way the necessary per-auction bid (max bid) would then be higher than the daily budget. 

 

So, in short, I'm wondering what this will mean in practice if the Max Bid on an adGroup (and the adgroup's keywords) are higher than the Daily Budget?

 

I guess the behavior that I want is for the campaign to have a max monthly spend... allowing for SOME ads to run... with the understanding that the high value ads simply might not run every day. 

 

 

 

 

 

 

 

 

1 Expert replyverified_user

Re: Max Bid Higher Than Daily Budget?

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# 2
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Since you're using Single Keyword Adgroups, you have already isolated those High-Value High-Cost Keywords. I will look into this, but I believe your CPC can't deviate too far from your campaign budget. You have a few options:

 

Move them into a new High-Cost Keyword Campaign to control its budget.

 

Or. Since your budget is small, if you have multiple campaigns, you could use a Shared Budget on all the campaigns that have these keywords, to allow higher-cost clicks. You can support raising the AdGroup bids on those. (This would actually only help if your monthly was higher, so disregard)

 

Or. You could increase your daily budget to a high amount and run out early. If you are Post-Pay, you can set a rule to pause campaign once reached.

 

Or. Since you would only be able to get about 15 $20 clicks out of your budget, and it isn't the smartest strategy to run out in a day, you could use automated rules to activate your campaigns in intervals. Giving the account a brief chance to spend and then pause it for a while. This will spread it out.

 

But. Here is my advice, only spend money on keywords that will get you the best performance. If you can spend $300 on 15 clicks and provide a better ROI than $2 words, maybe you should do that. But those good performing, cheap words are hidden somewhere.

Re: Max Bid Higher Than Daily Budget?

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# 3
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Thanks Chris.

We considered the "high value" campaign concept. However, I feel this would run contrary other recommendations I have seen with regard to keyword grouping. I wouldn't want to jeopardize any "quality lift" or "halo effect" that might arise from well-grouped keywords. I also simply like the concept of a having an intuitively organized account...

I'm curious how a "rule" could be created to pause the account at a certain point. This would be accomplished with scripting?

As to finding other keywords... there is clearly a reason these words are so expensive.





Re: Max Bid Higher Than Daily Budget?

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# 4
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Automated Rules are a handy tool for many reasons. These are not scripts, they are much simpler. These can be set at Campaign, AdGroup or KeyWord Levels. For example, navigate to the Campaign-Level. On the same row as the big red "+ Campaign" button, there is the "Automate" option. You can choose to make a rule for "Enable Campaigns When" or "Pause Campaigns When". You can make these run once, daily, weekly, or monthly.The same can be done for AdGroups.

Re: Max Bid Higher Than Daily Budget?

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# 5
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Holy cow! I didn't even know that was there! We could set a cost rule, and I think that could work.

Am still wondering what would happen if we just set daily budget less than max bid, though (just for sake of understanding).

Re: Max Bid Higher Than Daily Budget?

Community Manager
# 6
Community Manager

Hi Evan,

 

Just to clarify--setting a daily budget that is lower than the avg. CPC needed to get a click will likely mean that you won't get clicks, unless the avg. CPC drops well below the usual amount.

 

Beyond the scheduling and automation that Chris suggested, I'd also recommend reconsidering your bidding strategy, depending on your goals. Have you texted automated or "maximize clicks" bidding? It's a strategy that can often help you to participate in less competitive auctions--you would just want to test and make sure you still get a profitable conversion rate.

 

Cassie

Re: Max Bid Higher Than Daily Budget?

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# 7
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So, my impression was actually that daily budget is really more like monthly budget. In other words, google caps at the month, rather than the day???

They also indicate that some days you might get more (or less) exposure than your daily budget would allow... with the understanding that everything would balance by the end of the month (so that, on average, you will have spent your daily budget).

I took the above to mean that, when you set your daily budget, you are really setting a monthly limit, and Google would be able to accommodate a higher CPC than the daily budget would allow -- result being that google simply would adjust and not bid every day.

BUT... it sounds like you are saying this might be incorrect? It sounds like the daily budget will actually take precedence, and if auctions cannot be accomplished for a number less than the daily budget, then our ads simply will not show, regardless of how little we have spent by the middle of the month?

Bottom line... Is the impression that, if you haven't been spending your budget, Google will leave that money on the table, rather than taking all that unused daily budget to spend on a high value click (within Max CPC), even though that high value click would actually exceed the DAILY budget?

Re: Max Bid Higher Than Daily Budget?

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# 8
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For what it is worth, decided to experiment.

Keywords are set to $20, and daily budget is set to $10.

We are still receiving some impressions (and clicks).

The CPC currently ranges from approx. $9-12.

So there is definitely SOME wiggle room when max budget exceeds daily bid.

The question is whether some keywords will wait a few days more, and then bring in a $20 click.

Otherwise, it seems that Chris is correct, and the max bid is going to be within 20% of the daily budget, regardless of the Max Bid that is set on the keyword.

Will update in a few more days when I have more data.