10 Things to Know about Your Budget in AdWords
For people not deeply familiar with Google AdWords, it can be a bit intimidating to try to use it. One of the scariest parts has to do with costs. People are worried that their costs will be out of control, and rightly so. If not set up properly, campaigns can waste a great deal of money. Fortunately, AdWords offers ways to control your budget that are easy to understand. Here are 10 things you should understand about your budget in AdWords:
- When you create a new campaign in AdWords, you are prompted to assign a budget for that campaign in the set up panel.
- The budget represents the average you are willing to spend per day for that campaign.
- Your campaigns budget can be changed at any time— simply go into the campaign settings to make the change.
- Because customer traffic fluctuates from day to day, Google may allow up to 20% more clicks in one day than your average daily budget specifies. This is called “overdelivery.”
- Generally, your budget is intended to create a normalized amount of spending over the course of a month. If you multiply the amount of your daily budget times 30.4–which is the average length of a month— that is the most you can be charged by Google for that campaign in one month.
- If Google shows your ads too often, and your costs for the month end up exceeding what you should have paid (given your daily budget), a credit will automatically be applied to your account.
- If you want to check your average daily budget across all campaigns, you can use the “budget” column under the campaigns tab.
- Although typically set for each individual campaign, AdWords allows you to create a budget that is shared among several campaigns. This can be good because if one campaign is not using all of its budget, another campaign could use the remaining portion.
- In the campaign settings, you can choose between “standard” or “accelerated” delivery. With standard delivery, AdWords will try to spend your budget evenly throughout the day. With accelerated delivery, AdWords will deliver your ads as much as possible, using all of your daily budget as soon as possible.
- It’s almost always a good idea to start a new account or new campaign with a small budget. You will need to get some data from campaign that’s been running in order to know if it spending your money well before being more aggressive with your spending.
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