AdWords
5.5K members online now
5.5K members online now
Improve your AdWords performance and boost your ROI, CTR, and Quality Score
Guide Me
star_border
Reply

Bid Modifiers and Daily Budget

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

What happens if your bid modifier would cause your bid to exceed your daily budget? I tried to find the answer online, but this is a pretty rare problem to have so I couldn't find anything.

 

The situation is that I have a client who only provides services within their state but they would prefer to do most of their business locally (in their metropolitan area) because it's cheaper for them to not have to travel as far. So I have the location settings to only show ads in their state and then I set up a 50% bid modifier for their city. The issue is that they don't want to spend more than $10/day regardless of how many clicks/calls that gets them and I have been slowly increasing bids because they weren't making any traction. The clicks have turned out to be a lot more expensive than remembered them being when I last had a client in this industry, so I have had to increase the bids to $9 to even get any clicks. I know that with my bid modifier in place, this means I could be paying as much as $13.50 for a click in their area, but my daily budget is set to $10 so will AdWords even let me bid on these terms, or how does that work in that situation?

 

Thanks!

1 Expert replyverified_user

Re: Bid Modifiers and Daily Budget

Explorer ✭ ☆ ☆
# 2
Explorer ✭ ☆ ☆
Hi Lion S

You have asked adwords to increase the bid for that particular place,so adwords will do that irrespective of your daily budget.
Marked as Best Answer.
Solution
Accepted by MosheTLV (Top Contributor)
September 2015

Re: Bid Modifiers and Daily Budget

Badged Google Partner
# 3
Badged Google Partner
The old standby is that Google may exceed your daily budget by up to X (10-20%?), but over the course of the month you will not pay more than your daily budget * the number of days in the month. So yes, you could end up paying $13.50 for a single click, and exceeding that days budget. Then, another day you could only end up spending only $6.50, and you are at $10/day on average.

I know how people can be sometimes, but try to find a way to explain to the client that they may spend $12 today, and $8 tomorrow, but the total monthly spend won't exceed $300/$310.
Tom

Re: Bid Modifiers and Daily Budget

Top Contributor
# 4
Top Contributor
one possible way to explain the issue is to emphasize
that adwords is primarily based on an auction model --
like real-world auctions, prices are not fixed but costs
are bound by how much you are willing to spend.

Re: Bid Modifiers and Daily Budget

Visitor ✭ ✭ ✭
# 5
Visitor ✭ ✭ ✭
Thanks everyone! That was really helpful - I appreciate it :-)