AdWords budget changes: make sure you’re not caught out

If you’re a Google AdWords advertiser, you may have noticed your account spending has gone up in the last few weeks. That’s because Google introduced a new rule last month which enables it to ‘overspend’ in a day by up to 100%, as long as it keeps to a monthly budget.

Now, if you’ve got a niche campaign, or you bid low, and you never reach your daily spending limit, this won’t affect you. Nor does it affect automated bidding, they say. But if your campaigns have manually-set bids and are occasionally or always hitting their daily budget, it may have an impact.

Effectively, Google is saying that if you’ve set a £10/day budget for a campaign, you’re really setting a £300/month budget. So if your campaign fell short of £10/day on some days, but hit the buffers on others, you wouldn’t spend your £300. It reckons that you really wanted to be spending more than £10 on those days when it was limited to £10. And that’s what it’s now allowing …without asking you.

For many advertisers, this just isn’t true. You may have set a £10/day budget knowing that on some days the limit will be hit and on others it won’t, because your target monthly budget is about £250. You’re now going to need to revise daily budgets accordingly. Make sure you don’t get caught out.