How To Set Your Google Ads Budget
If you have a Google Ads account, you will need to choose a daily budget for each of your campaigns based on the average amount that you're comfortable spending and your advertising goals. It's important to remember that you can change your budget at any time. So, bearing this in mind, how do you set your Google Ads budget?
1. Work out your daily budget
If you have a monthly budget, you will need to work out your daily budget first. To do this, simply divide your monthly budget figure by 30.4 (the average number of days in one month). Google Ads will display your ads until your daily budget is met, and you will only pay when someone clicks on your ad.
2. Set the amount
To set your daily budget, navigate to "Campaigns" from the home screen in your Google Ads account and select your campaign. Click on the current budget and enter the amount. Once you've done this, tap the tick box to save.
What you need to know
Your ad spend may vary every day, but you won't pay more than the monthly charging limit (your daily budget x the average number of days in a month). If your ads get you more traffic on certain days, you may spend up to two times your average daily budget. However, this is balanced out by the days when your spend is lower than your daily budget.
How to change your budget
You can change your daily budget as many times as you like and at any time. To edit your daily campaign budget, you'll need to sign in to your Google Ads account and head to the "Campaigns" page. Next, select the campaign you'd like to edit before clicking on the pencil icon. Input your new average daily budget and click save.
You'll see these adjustments straightaway in your account. However, depending on when you edit your budget, the way that your campaign spends it will vary based on the frequency or time of your change.
A Final Note To Be Aware Of
Changing your campaign budget can have a negative effect on the performance of your campaign. Generally speaking its best to increase (or decrease) by a maximum of 20% of the previous daily budget.
For example, if your ad spend budget was $100/day and you wanted to start scaling up, it will be best to increase to $120/day. Let things sit for a day or two, and then increase by another 20%. Sometimes it's totally fine to double a daily budget in one shot, such as $100/day to $200/day, however more times than not, it will throw your campaigns for a loop.
The selected bidding strategy for your campaign will also effect how and when you'll want to adjust budget. If you're leaning on Google's automated bidding strategies, changing budget will often negatively effect your campaigns if not handled correctly.
To find out more about how to set Google Ad budgets, contact us at SparrowBoost today.