Daily budget questions

Discussion in 'Google AdWords' started by jof, Oct 20, 2006.

  1. #1
    In Adwords I understand that your daily budget can be exceeded by 20% but they say that it will sort itself out over a month so it won't exceed 30 x your daily budget. But what happens if you change your daily budget several times over that month? Which daily number does it use? An average?

    I'm new to Adwords and still testing so have been changing the daily budget quite a lot. Today seems realy really slow not getting many clicks I'm wondering if my playing with the daily budget is slowing my ads?
     
    jof, Oct 20, 2006 IP
  2. Micromag

    Micromag Well-Known Member

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    #2
    no, it will be used the recorded daily history for each day.

    The 30 day is just a kind of contract guarantee. On the past Google used to charge back you for the money on the day after and it was very frequent - after Google introduced the 30 day rule is more rare the chage back I just had it once 3 weeks ago.

    do not use the daily budget to control how much you spend per day:

    set your delivery to accelerate and use the daily budget just to avoid a overbudget - your daily spend should always be determined by your max bid values, not by your daily budget.

    Not sure if this is your case, but if your daily budget are being hit frequently this means that you are bidding too high, so decrease your bid and you'll get more traffic for the same price.
     
    Micromag, Oct 20, 2006 IP
  3. Art

    Art Peon

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    #3
    Accelerated delivery is the most efficient use of the Adwords system. A lot of people will think $10/day (as an example) is too much but you're only missing out on potential conversions.

    If you can spend $100/day and get $200 back, why cap yourself at $10/day? You're reaching your conversions at a faster rate, which allows you to profit a great deal more in the long run.

    I run my campaigns witha budget that's usually well above what I expect to spend (unless I'm trialing). As Micromag said, use your bids to limit your daily spend instead of your budget. Anything else is innefficiency... but then that's a whole other matter of economics.
     
    Art, Oct 20, 2006 IP
  4. aeiouy

    aeiouy Peon

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    #4
    Well in a simplistic world that makes pefect sense. People often have cash flow issues though, that limit them from just spending as much as they possibly can as long as it is earning them money. So there are legtimate reasons to want to limit how much you are spending.
     
    aeiouy, Oct 22, 2006 IP
  5. jof

    jof Peon

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    #5
    Yeah, that's how it is for me aeiouy. I am getting a good ROI, although it's a bit random at the moment, but I have to limit myself because I'm just starting and it'll take a while for the checks to come in and to clear as I'm not in the US.

    I'm still unsure how they will calculate my monthly amount if I'm constantly adjusting my daily spend. I won't worry too much for now. Once I get a good cash flow going I'll set it high enough so I won't hit it.
     
    jof, Oct 24, 2006 IP
  6. Dead_Elvis

    Dead_Elvis Guest

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    #6
    Uh, guys, he said he was new to AdWords... of course he wants to limit his losses––that's how you learn your way around a new system without getting your a** burned.
     
    Dead_Elvis, Oct 25, 2006 IP
  7. GuyFromChicago

    GuyFromChicago Permanent Peon

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    #7
    One could argue the more $ you're losing the faster you're learning:D

    hehe:D
     
    GuyFromChicago, Oct 25, 2006 IP
  8. Karomesis

    Karomesis Guest

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    #8
    unfortunately, you're probably right man.:(

    the question then begs itself....how fast do you wanna learn?;)
     
    Karomesis, Oct 25, 2006 IP
  9. jof

    jof Peon

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    #9
    As fast as I can afford to. :) My rule for now is I just pump back in what I make... at this early stage I can't afford to do it any other way. But it's very true you need to spend a decent amount early and be prepared to lose it in order to learn and suceed. I wish I had 10k play money right now!
     
    jof, Oct 25, 2006 IP
  10. jof

    jof Peon

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    #10
    Actually, here's an example of what I was talking asking about initially regarding daily budget. Today I changed my budget to $50 for one of my campaigns but it's now stopped at $27.24 and says '100% served'.
     
    jof, Oct 26, 2006 IP