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Budget Amount and Number of Auctions

Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hey! 

 

Does budget affect the amount of auctions I go into? I'm not talking from a cost perspective, but does google put me in different sets of auctions based on the amount of budget I have? Does it try to not put me in a lot of auctions at the same time because I have a low budget?

 

For example, (and I see this often): I allocate 100$ to my campaign on the first day and spend all of that budget on the first day, but then if I decrease that budget to 20$ I get a spend that is much lower than 20$ (something around 15$) and the traffic comes in continuously through out the day, unlike on a 100$ daily budget campaign where I spend 50$ on the traffic in the first hour and get much more traffic really fast.

 

1 Expert replyverified_user
1 ACCEPTED SOLUTION

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

Re: Budget Amount and Number of Auctions

Top Contributor
# 3
Top Contributor
Hi Marc A,

Another thing to consider is your CPC bid as compared to your budget. Let's say your CPC bid is $5 and daily budget is $20. After 3 clicks, you've spent $15. Google does not show your ad to one user at a time. So, if Google shows your ad to 2 people at the same time and both people click on the ad, your spend for the day is $25. That's a 25% over-delivery, and Google guarantees no more than 20% over-delivery in a day. That means they have to stop showing your ad before your budget has been spent.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords

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Re: Budget Amount and Number of Auctions

Explorer ✭ ✭ ☆
# 2
Explorer ✭ ✭ ☆
Hi Marc,

Yes your daily budget affect the eligibility of your ad to compete in ad auctions. If you have a standard ad delivery settings google have to show your ad through out the day so it have to manage it by putting in auctions so that your ad can be served the whole day.

As you mentioned in example when your budget is 100$ half of the budget was spent in first hour, i also experienced that because when you increase your budget it put pressure on system because the system have to consume your budget so it put you in more auctions so that your daily budget can be consumed.

hope this helps!

regards,
Rahul Goel
Marked as Best Answer.
Solution
Accepted by topic author Marc A
September 2015

Re: Budget Amount and Number of Auctions

Top Contributor
# 3
Top Contributor
Hi Marc A,

Another thing to consider is your CPC bid as compared to your budget. Let's say your CPC bid is $5 and daily budget is $20. After 3 clicks, you've spent $15. Google does not show your ad to one user at a time. So, if Google shows your ad to 2 people at the same time and both people click on the ad, your spend for the day is $25. That's a 25% over-delivery, and Google guarantees no more than 20% over-delivery in a day. That means they have to stop showing your ad before your budget has been spent.

Best of Luck!

Pete
petebardo -- Deadhead doing AdWords