How is my budget used?

Google ads

How is my budget used?

Google Ads Budget

Your average daily budget is the average amount you set for each ad campaign on a per-day basis. It specifies roughly how much you are comfortable spending each day over the course of a month. Something to consider is how many days of the week are your ads showing? Do you only advertise Monday to Friday? If that is the case, you daily average for those 5 days a week will be higher than what you have set for your daily budget. Although shown as a daily budget, it is a monthly budget (30.4 days) divided over the number of days your ads show.

For example. Your daily budget is $100 per day. This means your monthly budget is $3040 (30.4 x 100). However, you only advertise Monday to Friday, which means you are advertising approximately 20-21 days of the month. Then you daily budget is approximately $3040 / 21 = $144 daily.

Google will also optimise your campaign spend for days of the month when you’re more likely to get clicks and conversions, like when search traffic is higher or when they predict a higher Return On Investment for your ads. This means that on some days you might not reach your average daily budget, while on other days you may exceed it.

One thing to note, that although your daily spend may fluctuate, you will never pay more than:

  • Your daily spending limit. Which is two times your average daily budget for most campaign, on any particular day.
  • Your monthly spending limit. Which is 30.4 times your average daily budget for most campaigns, in any particular month.

You can change your average daily budget at any time. If you feel that you are not getting enough leads and your budget is running out too early during the day, then an increase could be in order. This doesn’t need to be a permanent change, but possibly an experiment to see if an increase in budget brings an increase in business. Sometimes you can have too much average daily budget and the market won’t spend it. This could be an opportunity to try another campaign or campaign type to work in conjunction with the original.

There are also times when you budget is not being spent. This could be due to your keyword bids are set too high for your daily budget. An example: If your keyword maximum cost per click is $4.00 and your campaign daily budget is only $10, then Google might not show your ads. The response to this would be to either lower the maximum cost per click or increase the daily budget.