Have you ever worried when you see Google spent more money than your Average Daily Budget? If yes, you’re not alone. If you haven’t seen that yet, be prepared. It’s actually nothing much to worry about if you know how Google works and it’s something preventable. This doesn’t have become a nightmare.
Why Google Ads Spend More Than Your Daily Budget?
You might be thinking that “I set an average daily budget for a reason,” and that reason is probably stopping Google from overspending. Well, that’s not the case, exactly. Your Average Daily Budget is an average rather than a limit. As the name suggests.
Google is more likely to spend more than your Average Daily Budget when the search traffic is higher because its algorithm predicts you would get more clicks, and possibly, more conversions. This is called overdelivery. We’ll explain overdelivery a little further later in this article.
Also, Google makes money running ads, and it uses almost every opportunity to spend your money when it can. Still, there’s a limit that Google can spend more than your Average Daily Budget. Your ads won’t cost you more than two times your average daily budget —at least for most of your campaigns— on any given day. Or, you won’t spend more than 30.4 times your average daily budget monthly —again, for most of your campaigns.
What Is Average Daily Budget?
The Average Daily Budget is the amount of money you’re willing to spend on a daily basis that is aligned with your marketing strategy. As we mentioned earlier, it’s an average, so Google might spend more than your given value, but it will spend much less if there’s either a little (or zero) chance for clicks or conversions according to its algorithm.
How Can You Decide an Average Daily Budget?
You probably have a budget you can use for advertisement throughout the year or a month. You set your campaign budget daily; so you can set your daily budget by calculating your monthly budget limit.
Let’s say it’s $500 for a month. To calculate your average daily budget, divide it by the average number of days in a month (365/12), and you get your average daily budget. In our case $500/(365/12)= $16.4 is your Average Daily Budget. So, your daily spending limit will be $16.4×2 = $32.8, and you won’t exceed $500 at the end of the month. In some cases, Google may exceed the monthly spending limit; don’t worry; Google will cover the difference.
4 Methods to Stop Google from Overspending Your Average Daily Budget
Usually, Google doesn’t spend more than your monthly limit, but as we stated in this article, it’s the most likely case. Sometimes you can be charged more than your monthly limit. This might not be a desirable situation, but you get overdelivery credit for the next month if there’s a case of overspending. Even though overdelivery credit can compensate for your losses, you might not want to exceed your monthly budget. Stopping Google overspending your Average Daily Budget is a solution for staying within your monthly budget’s boundaries. There are five ways to achieve this.
1.Using Adsbot’s Budget Alert
Adsbot has an alert feature that warns you when you’re close to overspending.
- You can add an alert
- On Account Level
- Using Label
- Here are the steps.
- Set a name for your alert
- Set a budget amount
- Set a trigger when Adsbot create insight or send an email
- Set start and end date
- Set the alert either account level or using a label
Moreover Adsbot helps you automate and optimize your campaigns in a minute. Get insights, alerts and smart recommendations with a single click. You will have a full control on your account and focus on strategy. Start you free trial today and see Adsbot in action.
2.Using Google Ads Scripts
Google Ads Scripts work wonders if you know how to use them, and it’s not that hard to use them. You don’t need to have advanced coding knowledge.
3. Monitoring Your Ads’ Performance
If you manage to pinpoint your worst performing ads —for example, your ads that are getting clicks but not conversions— you can have a chance to give them a break to optimize your overall Quality Score. This will decrease your spending on the bids.
You can learn more about Quality Score and its effects on your campaigns in our article.
4.Lowering Your Daily Bid Cap
If you’re not in a position to overspend, even with a chance of getting overdelivery credit, you can set half of the maximum amount you’re willing to pay for a bid. For example, if you want to spend $16.4 per day, set your daily budget to $8.2.
5.Using Automated Bidding
There are six types of Automated Bidding strategies in Google Ads that can help you optimize the Average Daily Budget. They usually help you get more conversions, but this might backfire if you don’t be careful when you use them because some of them are not primarily designed to decrease your spending. You can check our Smart Bidding —which is a subcategory of Automated Bidding— article if you want to learn more about Automated Bidding strategies.