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Twice the average daily budget!?!

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

With the new AdWords policy of charging twice the average daily budget, how does this not create a situation where the account's monthly funds are depleted long before the month is over?

 

EXAMPLE

If the daily spend is set to $10, this creates a monthly charging limit of $304.

Spending $20/Day, under this new policy, has the potential of exhausting the accounts funds in as little as 15.2 days.

 

Please tell me there is more to this than what is posted here...  https://support.google.com/adwords/answer/1704443?hl=en&utm_source=awfe&utm_medium=referral&utm_camp...

2 Expert replyverified_user

Twice the average daily budget!?!

Visitor ✭ ✭ ✭
# 2
Visitor ✭ ✭ ✭

Hi Michael

 

I don't believe your budget will be exhausted in 15 days because what google is allowing for is unexpected levels of traffic. So my understanding is if on Monday for example there was a lot of unexpected traffic google would allow you to take advantage of it by increasing your daily spend by double. 

 

(I guess the hope is that you make more conversions and are ultimately able to maybe increase your spend - I digress) 

 

The next day rather than you spending your limit of $10 you might only spend $8 and I assume that trend of slightly underspending will continue so that your monthly budget is not exceeded AND your adverts show for the normal 30 days.

 

Just my 2 cents.

Twice the average daily budget!?!

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

I wanted to add that I believe google have done this so you can take advantage when there is an increase in traffic due to seasonality or any other factor.

 

If your daily budget is fixed you would not be able to take advantage of any increases in traffic and in the end you 'could' lose out.

 

 

Twice the average daily budget!?!

Visitor ✭ ✭ ✭
# 4
Visitor ✭ ✭ ✭

Thank you for your reply Michael.

 

As an HVAC contractor in Southwest Florida, the volume of work frequently exceeds our ability to process it. For this reason, we use a daily budget to limit the amount of incoming sales leads.

In the past, if we wanted more work, we simply increased the budget.

 

With this new policy, Google has taken that control away from us. With no advanced notice, they have doubled our sales lead volume.

 

If we lower our daily spend 50% (To return to previous sales lead volumes) we will also be reducing our monthly charging limit by 50%.

 

 

Twice the average daily budget!?!

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭

Hi Michael

 

That is an interesting problem you have there and one I didn't anticipate when I read the changes. 

 

I have no idea what to suggest to help you unfortunately, maybe someone more experienced can advise?

Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
2w

Twice the average daily budget!?!

[ Edited ]
Rising Star
# 6
Rising Star

Hi there,

 

It simply means that the 20% additional spent capping for the daily budget has been increased to twice the daily budget.

Though, 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.

 

This additional spent will be based on historical performance on the days of the week or any other seasonal trend.


Regards
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Twice the average daily budget!?!

[ Edited ]
Visitor ✭ ✭ ✭
# 7
Visitor ✭ ✭ ✭

Folks, please read and understand the question in the body of the post before posting a reply. Thank you.

Twice the average daily budget!?!

Top Contributor
# 8
Top Contributor

@Mike M;

In terms of Google (which is a company of scale) you are not a typical advertiser. Most advertisers (who are Google's reference customer) would hire more people to cope with the additional volume of sales.  Increasing the daily  budget while still capping the monthly one at 30.4*daily budget serves their conversion goals. I agree that "twice" is a bit high, and 150% would be a better fit. But knowing Google (which is a data driven company),  I trust that "twice" was not set before analyzing a  huge database  of CPCs and conversions, and concluding that for most advertisers have peaks of daily spend which could reach 100% above the allocated  daily budget.

Moshe, AdWords Top Contributor , Twitter | Linkedin | Community Profile | Ad-Globe
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Twice the average daily budget!?!

Visitor ✭ ✭ ✭
# 9
Visitor ✭ ✭ ✭

Should not the person asking the question be the one to chose who provides the "Best Answer"?

 

No one in this thread even addressed the question: "...how does this not create a situation where the account's monthly funds are depleted long before the month is over?".

Twice the average daily budget!?!

Rising Star
# 10
Rising Star

@Mike M,

 

Hope you are aware of the Google algorithm used to manage the manage the budget at the end of the month in accordance with 30.4 with the 20% additional spent on any days of the month.

This new update will also work on the same algorithm.

 


Regards
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