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noUnderspend on budget

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# 1
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Hi Everyone,

 

I am new to AdWords and recently set up an account with a daily budget of $500 and am needing direction.  

 

Question 1.  Based off all that I have read, if we do not use our daily amount (example, we only used $82 on day 1), then the residual $418 will be allocated to other days within the month that would be better performing days?  So, if day 5 of the campaign is a high performing day - will a larger budget be used during that day to make up for the lack of spend on day 1? 

 

Question 2.  If our total monthly budget is $15,250 ($500x30.5 days) and we change some manually bid settings, will this will impact how we are charged or how the daily budget is calculated?

 

Question 3.  Can you do a daily budget and pay daily as opposed to setting up a monthly amount?  Example: If we want to spend $500 on day 1, $200 on day 2, $600 on day 3. . .  can that be done?  Or, do we have to set it up to be on an automated monthly billing cycle with an overall monthly budget? 

 

I hope my questions make sense. Again, I'm new and a little confused on the payment/budgeting portion from the amount of information out there.

 

Thanks,

Marla

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Accepted by MosheTLV (Top Contributor)
October 2015

Re: noUnderspend on budget

Rising Star
# 2
Rising Star

Hey Marla, how are things?

 


Marla H wrote: 

Question 1.  Based off all that I have read, if we do not use our daily amount (example, we only used $82 on day 1), then the residual $418 will be allocated to other days within the month that would be better performing days?  So, if day 5 of the campaign is a high performing day - will a larger budget be used during that day to make up for the lack of spend on day 1? 

 


No, residual budget WILL NOT be allocated to to other days. If your campaign doesn't have enough demand to use your entire budget, Google will leave it as it is and you will only spend $82 on day 1.

 

When the day turns, they daily budget begins again, and you'll have another $500 to use. Remember, it's called "Daily Budget" exactly because it's used on daily bases.

 


Marla H wrote: 

Question 2.  If our total monthly budget is $15,250 ($500x30.5 days) and we change some manually bid settings, will this will impact how we are charged or how the daily budget is calculated?

 


No, it will not impact how you are charged or how your budget is calculated.

 

But it may impact the volume of clicks that you have. Higher bids tends to results in higher average CPC, which consequentially will make will have less clicks than before. So if you have $1 cpc and $500 daily budget, you'd get 500 clicks. Increasing you bids to let's say $2, could cause you average CPC to become $1,40 instead of just $1, and then with the same daily budget of $500, you would now get 357 clicks (500/1.4) instead of 500 clicks.

 


Marla H wrote: 

Question 3.  Can you do a daily budget and pay daily as opposed to setting up a monthly amount?  Example: If we want to spend $500 on day 1, $200 on day 2, $600 on day 3. . .  can that be done?  Or, do we have to set it up to be on an automated monthly billing cycle with an overall monthly budget? 

 


You can't set Monthly amounts.

 

Total account spend over the month is calculated by summing your costs from each day. So if you had $ 250,00 of actual cost everyday for a month, it's 250 * XX (by XX being the total days of the month). It's not the other way around. 

 

You can also refer to this article for more information:

https://support.google.com/adwords/answer/6312?hl=en

 

Hope this helps.

 

Cheers,

Leandro Martinez


Leandro Martinez | Basta1Click

View solution in original post

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

Re: noUnderspend on budget

Rising Star
# 2
Rising Star

Hey Marla, how are things?

 


Marla H wrote: 

Question 1.  Based off all that I have read, if we do not use our daily amount (example, we only used $82 on day 1), then the residual $418 will be allocated to other days within the month that would be better performing days?  So, if day 5 of the campaign is a high performing day - will a larger budget be used during that day to make up for the lack of spend on day 1? 

 


No, residual budget WILL NOT be allocated to to other days. If your campaign doesn't have enough demand to use your entire budget, Google will leave it as it is and you will only spend $82 on day 1.

 

When the day turns, they daily budget begins again, and you'll have another $500 to use. Remember, it's called "Daily Budget" exactly because it's used on daily bases.

 


Marla H wrote: 

Question 2.  If our total monthly budget is $15,250 ($500x30.5 days) and we change some manually bid settings, will this will impact how we are charged or how the daily budget is calculated?

 


No, it will not impact how you are charged or how your budget is calculated.

 

But it may impact the volume of clicks that you have. Higher bids tends to results in higher average CPC, which consequentially will make will have less clicks than before. So if you have $1 cpc and $500 daily budget, you'd get 500 clicks. Increasing you bids to let's say $2, could cause you average CPC to become $1,40 instead of just $1, and then with the same daily budget of $500, you would now get 357 clicks (500/1.4) instead of 500 clicks.

 


Marla H wrote: 

Question 3.  Can you do a daily budget and pay daily as opposed to setting up a monthly amount?  Example: If we want to spend $500 on day 1, $200 on day 2, $600 on day 3. . .  can that be done?  Or, do we have to set it up to be on an automated monthly billing cycle with an overall monthly budget? 

 


You can't set Monthly amounts.

 

Total account spend over the month is calculated by summing your costs from each day. So if you had $ 250,00 of actual cost everyday for a month, it's 250 * XX (by XX being the total days of the month). It's not the other way around. 

 

You can also refer to this article for more information:

https://support.google.com/adwords/answer/6312?hl=en

 

Hope this helps.

 

Cheers,

Leandro Martinez


Leandro Martinez | Basta1Click