Table of Contents
Google has reported an important update rolling out a change to the way AdWords budgets can be used and it’s been taken as one of the most anti-advertisers changes made ever.
Starting October 4, 2017, campaigns will be able to spend up to twice the average daily budget to enable advertisers achieve their advertising goals, like clicks and conversions and the advertising community is not the least bit happy.
On days with lots of high-quality traffic, ad costs could be up to 2 times of daily budget. This spending is adjusted by days when ad spend is below daily budget.
Advertisers won’t be charged more than their monthly charging limit: the average number of days in a month (30.4) multiplied by their average daily budget.
Overdelivery and the daily budget
As mentioned, advertisers might see that their advertising costs each day somewhat higher or lower than what they set for their daily budget. If they do, don’t worry, over a month-long billing cycle, they won’t be charged more than the daily budget would’ve allowed for over 30.4 days.
“Let’s say you set your budget at $5 a day and your billing cycle is 30 days. Over the course of the month, you notice that your charges vary. Some days you’re charged $2, on others you’re charged $10. But at the end of the month, your charges won’t exceed $152 (that’s 30.4 multiplied by your $5 budget). So even though your campaign costs tipped above and fell below your $5 budget from day to day, at the end of the month, you’re still charged no more than what you budgeted.”
Why Advertisers ar unhappy?
This change is not supposed to cost advertisers more money and it will even enable them reach their goals more reliably. But, they are upset with the idea of spending their monthly budget earlier than usual.
With this change, if advertisers see a few really high traffic days early in the month it’s possible they may spend through their budget well before the month is over. Of course, that would mean ads would no longer be shown throughout the duration of the month.
Reactions from the Advertising Community
Table of Contents