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budget

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

I set a budget on my campaign for $20 a day, I got 1 call and was charged $20.27. Can anyone explain why the cost is so high

1 Expert replyverified_user

Re: budget

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆
Hi Tony,

When you set a budget of $20. Google can spend 20% more than your daily budget on any given day if it feels you are getting more traction. Hence the higher spends.

Regards
Rohit Khanna

Re: budget

Top Contributor
# 3
Top Contributor
Just to add to Rohit's answer, Google can, indeed, spend up to 20% more than your daily budget on any one day, but they are obliged to make adjustments to ensure that during the month they do not spend more than 30.4 times your daily budget (30.4 because that is the average number of days in a month - it's Google - they're engineers - this makes sense to them!)

what this can mean in practice, is that you may get overspend days earlier in the month and then you might see a slight drop in impressions and clicks towards the end of the month as Google "throttles back" to keep within the established monthly budget.

This is an indication that you are missing out on potential traffic and it's a good idea to look at things like your impression share and the budget recommendations that Google provides.

Of course, there is always an easy argument to say, hey - there's lots more of this kind of traffic out there, pay more and get more - but this may not be ideal. Before increasing budget just to get more of the same - be sure that the traffic you are already getting is giving a decent ROI (and optimise to improve that)... once you get your campaigns running at a profit there is a very strong argument to not leave any traffic untapped.