Google Announces AdWords Users Can Overspend Their Budgets by Double

Google Makes an Announcement that AdWords Users Can Overspend their Budget by Double in San Diego, CA

The announcement from Google that advertisers can now spend twice their average daily budget may not seem like much of a big deal, but it could have an impact on AdWords users. Google’s announcement tweet made it sound like it was optional, but that’s not the case. Whether this move is a cause for concern or not depends on your advertising priorities. Here’s what San Diego AdWords experts know about the latest changes to the AdWords daily budgets and its impact on paid marketing.

What’s the Change?

Previously, campaigns could exceed daily budget limits by 20 percent. However, the limits have now been extended. Most AdWords campaigns go through periods of spikes and drop-offs in clicks and conversions. For example, Sundays may normally be slow before things pick up again on Monday. The reason for the adjustment appears to be to make it easier for advertisers to deal with the fluctuations in online traffic.

Is There a Safety Net?

There is a safety net for advertisers, who will not have to pay more than 30.4 times their daily budget for any given month. The figure is calculated based on the average number of days in a month (365 divided by 12).

How Will It Work?

Google will help you compensate for low traffic days by showing your ads on days when there’s more traffic. As was the case previously, you’ll be able to see where you are with your daily budget and make appropriate adjustments. You now have more room to go over your daily limit. However, frequent changes to daily budgets for short-term campaigns may make the monthly limit irrelevant.

The good news is there will be no extra charges for monthly budget overages that may result from this change. As far as the long-term impact is concerned, it all depends on your specific needs. For instance, hotels and similar businesses with limited budgets that need a steady customer flow may see uneven booking patterns if they spend most of their budget in the beginning of the month. However, other businesses may be just fine with uneven spending patterns.

Google changes its paid marketing rules every now and then, making it difficult for businesses to keep track. However, the team at Saba SEO is always up to date with the latest changes in search engine algorithms and PPC guidelines. We offer customized and quality-assured internet marketing San Diego companies and businesses all over the world can rely on. Whether you need a comprehensive SEO strategy or a focused AdWords campaign within your budget, we are here to help. Call us at 858-951-1717 to schedule an appointment.