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[Discussion] What is your best advice for managing a daily budget?

[ Edited ]
Community Manager
# 1
Community Manager

Hi Community,

 

I hope most of you are aware of the free AdWords courses that we offer within our Help Center. They're great resources, especially if you're new to AdWords and online marketing.

 

We're going to start a weekly quiz series where we ask a question that can be answered through one of our courses. This week's question is from Online Marketing 201.

 

Question of the week:

What is your best advice for managing a daily budget?

 

Anyone can answer (you don't have to have taken the course) - so let's see who can get the most stars for their response!

 

Kathleen

3 Expert replyverified_user
1 ACCEPTED SOLUTION

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

Re: What is your best advice for managing a daily budget?

[ Edited ]
Rising Star
# 2
Rising Star

Hi,

 

Here are some of the best practices that I follow for maintaining Daily budget:

 

  • Once you have clarity on the total budget from the client, you need to divide spends on a daily basis by taking into consideration 2 things:

 

  1. To decide on spends for the each day, you need to consider 30.4 days in the month and not 30 or 31. This will help you get the best approximation for your daily spends on your campaigns
  2. AdWords can spend up to 20% less or more of your allocated daily budget. You need to account for all possible scenarios and decide on the total monthly budget accordingly. I would approximate the total spends (by adding up to 20% more to it) and then adjust for the daily budget. This way, I can ensure that the campaigns spends are within the allowed budget limit

 

  • If you are about to go live with account/campaign, you should take into consideration the spending potential of individual campaigns/themes (depending on the search trends & other metric observed in the AdWords Keyword Planner). Using this knowledge you should look to allocate more budget to the campaigns that have a greater potential. This can help you ensure that the performance of your themes is not hindered in any way

 

  • If your campaigns have gone live in the past week or fortnight, you have the opportunity to gauge the performance till date and depending on it, make appropriate changes to the individual campaign daily budgets. For Example – If there you have 4 Campaigns A – D and post a week or so after going live, you see that Campaign A & C have been performing well and have been spending their daily budgets more efficiently as compared to Campaign B & D. You can reduce the daily budgets for B&D and reroute the budget to the better performing campaigns A & C

 

  • You can look to adjust campaign budgets depending on the average CPC’s & spends recorded for your keyword themes. If your incurred cpc’s are high enough, they may cause your campaign budget to be depleted sooner in the day which could hamper your campaigns overall performance. By lowering or increasing your cpc’s, you can ensure that your overall daily budget is consumed more efficiently

 

  • Adjust your budgets keeping in the check any ad scheduling that may be active in the campaign. If you are trying to restrict spends in a certain part of the day or maybe increase it, you need to ensure that the deficit budget is efficiently spent during the rest of the hours of the day

 

  • Check for campaign status updates from AdWords. If your campaign status says “Limited By Budget”, you may want to adjust overall budgets and give the campaign an opportunity to spend & perform up to its full potential

 

  • Lastly, always keep an eye out for the ‘Opportunities Tab’. It gives you a detailed summary of your campaigns potential and suggests an optimum daily budget for all your campaigns

 

Looking forward to other replies. Smiley Happy

 

Cheers!

 

Shashank

Cheers,
Shashank Singh, AdWords Rising Star |
Did you find any helpful responses or answers to your query? If yes, please hit "Like" or "Accept as Solution"

View solution in original post

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

Re: What is your best advice for managing a daily budget?

[ Edited ]
Rising Star
# 2
Rising Star

Hi,

 

Here are some of the best practices that I follow for maintaining Daily budget:

 

  • Once you have clarity on the total budget from the client, you need to divide spends on a daily basis by taking into consideration 2 things:

 

  1. To decide on spends for the each day, you need to consider 30.4 days in the month and not 30 or 31. This will help you get the best approximation for your daily spends on your campaigns
  2. AdWords can spend up to 20% less or more of your allocated daily budget. You need to account for all possible scenarios and decide on the total monthly budget accordingly. I would approximate the total spends (by adding up to 20% more to it) and then adjust for the daily budget. This way, I can ensure that the campaigns spends are within the allowed budget limit

 

  • If you are about to go live with account/campaign, you should take into consideration the spending potential of individual campaigns/themes (depending on the search trends & other metric observed in the AdWords Keyword Planner). Using this knowledge you should look to allocate more budget to the campaigns that have a greater potential. This can help you ensure that the performance of your themes is not hindered in any way

 

  • If your campaigns have gone live in the past week or fortnight, you have the opportunity to gauge the performance till date and depending on it, make appropriate changes to the individual campaign daily budgets. For Example – If there you have 4 Campaigns A – D and post a week or so after going live, you see that Campaign A & C have been performing well and have been spending their daily budgets more efficiently as compared to Campaign B & D. You can reduce the daily budgets for B&D and reroute the budget to the better performing campaigns A & C

 

  • You can look to adjust campaign budgets depending on the average CPC’s & spends recorded for your keyword themes. If your incurred cpc’s are high enough, they may cause your campaign budget to be depleted sooner in the day which could hamper your campaigns overall performance. By lowering or increasing your cpc’s, you can ensure that your overall daily budget is consumed more efficiently

 

  • Adjust your budgets keeping in the check any ad scheduling that may be active in the campaign. If you are trying to restrict spends in a certain part of the day or maybe increase it, you need to ensure that the deficit budget is efficiently spent during the rest of the hours of the day

 

  • Check for campaign status updates from AdWords. If your campaign status says “Limited By Budget”, you may want to adjust overall budgets and give the campaign an opportunity to spend & perform up to its full potential

 

  • Lastly, always keep an eye out for the ‘Opportunities Tab’. It gives you a detailed summary of your campaigns potential and suggests an optimum daily budget for all your campaigns

 

Looking forward to other replies. Smiley Happy

 

Cheers!

 

Shashank

Cheers,
Shashank Singh, AdWords Rising Star |
Did you find any helpful responses or answers to your query? If yes, please hit "Like" or "Accept as Solution"

Re: What is your best advice for managing a daily budget?

[ Edited ]
Rising Star
# 3
Rising Star

I'd suggest the following after setting a daily budget:

Understand your peak hours: Check Dimensions> Hour of the day to understand what is the hourly spend and how long your budget lasts in a day. This would also help in scheduling ads to run during hours that are more valuable to your business.

How soon do you spend? If the campaign objective is to exhaust the budget as soon as possible, go for Accelerated delivery. On the other hand, if the campaign demands uniform distribution (to an extent) of daily budget, go for Standard delivery. Standard delivery would ensure budget is stretched throughout the day.

Examine historic data: Looking at historic data always helps in optimizing! I'd suggest checking if the campaign has been just meeting the budget, struggling to meet the budget or demands more budget. This can be understood by looking at cost. If the campaign has been struggling to meet the budget, I'd suggest broadening the targeting or add more targeting criteria. If the campaign demands more budget, you'd see 'limited by budget' under campaign status. This means budget isn't sufficient and gets exhausted easily. You can consider increasing the budget, or check if the campaign is spending at the right time and schedule accordingly.

Dedicated Budget: New advertisers more often create campaigns with Search & Display networks together. While this has advantages, it is essential to verify if budget is equally consumed by both the networks. In cases where you'd like to allocated more budget to search and less to display, splitting campaigns would certainly help. By doing so, you can ensure there are dedicated budgets, so one doesn't eat up the other and you'll also have the convenience of managing them separately.

Looking forward to see more suggestions!

Cheers,
Sumanth

Sumanth Sridhar

Re: What is your best advice for managing a daily budget?

Community Manager
# 4
Community Manager

Hi Everyone,


Thanks everyone for your fantastic responses! So detailed, so insightful! 

This week's winner with three stars is @ShashankSingh  - Awesome job ShashankSingh!

 

This week's question is up - check it out here and give us your best responses!

 

Kathleen

Re: What is your best advice for managing a daily budget?

Rising Star
# 5
Rising Star
Thanks Kathleen!

Smiley Happy
Cheers,
Shashank Singh, AdWords Rising Star |
Did you find any helpful responses or answers to your query? If yes, please hit "Like" or "Accept as Solution"

Re: What is your best advice for managing a daily budget?

Community Manager
# 6
Community Manager
Of course ShashankSingh! Would love to see your input on this week's question!