AdWords refocuses attention on budgets

Before Christmas, Google made a major change to the way it manages your AdWords spending. In the past, it would cap spending at your daily limit on days where there was lots of demand. For example, if your limit was £10/day, and on Monday to Friday there was £15-worth of clicks available to you, but at weekends only £5, your spending would end up as £10 on weekdays and the full £5 at weekends. This would make your total for the week £60. With the change, Google said: “Aha! If you want to spend £10 a day, you’re telling us you want to spend £70 a week”, so it now allows your weekday spending to bust your own limit and hit £12.

This made things quite difficult for people who manage their spending carefully. But has it resulted in a lot more spending on AdWords, perhaps without people knowing? Hopefully not – especially if you’re paying someone to do it for you. Wordstream has done an analysis and has concluded that it’s not something we should be too concerned about. We’ve seen a few strange results, especially with new campaigns and accounts when they start, but we’ve quickly been able to calm them down.

As ever, try to match your campaign’s scope to your budget. If you’re managing your own AdWords campaigns, do you know what your impression share is? If you’re only showing half of the time, because your budget won’t stretch that far, maybe you should think about concentrating on advertising half as many products, or on half as many search terms?