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Question about daily budget

searched the forum using google, but still unsure

         

ucdawg12

8:00 pm on Jun 15, 2005 (gmt 0)

10+ Year Member



My basic question is, if google recommends me a $400 daily budget, yet my ad never costs more than $50 a day and I set my budget to $100 will Google only show it 1/4th of the time even though it never comes close to reaching my daily budget? A few days ago I had been hit with a drastic change in CPC that made me rethink my campaign, and I don't want to risk getting hit for what I was hit with before, so I toned down my daily budget, but I am afraid Google won't show my ad normally because of this.

When Google sees that your campaign is under the daily budget, what does it go by to decide how to pace your ad for the day? Does it go by its estimates or your campaign's personal history? This campaign only has one keyword in it, and when I use traffic estimator it says that the average CPC will cost like .52, yet usually it is .06-.08, google also estimates the keyword will cost around $396 a day, but it never costs more than $50-60. Will Google recognize this or will it blindly go by its almost always inaccurate estimates and can it honestly think it needs to pace my ad so it doesn't reach exceed its daily budget when it has only spent $15 out of the possible $100 nearing the 11:59PM?

Finally, one last question, I also saw that Google will use the daily budget to make sure you don't ever go over your monthly budget, so sometimes you will be a bit under/over but it never go over the budget for the entire month. Now does this mean if I set my daily budget to $100, ($3000 monthly budget) that if for 29 days I spend half of that budget ($50 a day, $1450 overall), and for some reason my CPC goes nuts again, will it feel free to spend that $1550 remaining in the monthly budget in a single day?

Thanks

ucdawg12

10:49 am on Jun 17, 2005 (gmt 0)

10+ Year Member



No one knows anything about this?

AdWordsAdvisor

3:20 pm on Jun 17, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



No one knows anything about this?

ucdawg12, I just stopped by for a few minutes, and won't have time enough right now to answer your questions, before heading off for other tasks. I'll do my best to come back later today and fill you in on the basics.

In the meantime, though, the topic of daily budget has been discussed dozens of times on this Forum. So a WebmasterWorld site-search (scroll to bottom of page), or a G search along the lines of 'forum81 daily budget' will probably net you a lot of useful info.

More later, I hope. ;)

AWA

ucdawg12

1:45 pm on Jun 21, 2005 (gmt 0)

10+ Year Member



Hey AWA, I did a couple of searches again and while I found some information it wasn't quite as indepth as I had hoped it would be. Hopefully you can help clear some things up for me.

AdWordsAdvisor

2:25 am on Jun 22, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Hey AWA, I did a couple of searches again and while I found some information it wasn't quite as indepth as I had hoped it would be. Hopefully you can help clear some things up for me.

Ucdawg12, I haven't forgotten about your questions. I've just had a bunch of really busy days. And it ain't slowing down, either. ;)

I'll do my best to get to this tomorrow. I also know there are dozens of other folks on this Forum that could do a great job with these questions.

Anyone? Who wants to prove me right?

AWA

AdWordsAdvisor

1:45 am on Jun 23, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



ucdawah - well, here it is 6:40, and I am getting to WebmasterWorld to post for the first time since I got here just about 12 hours ago. I've got a few more posts to make plus a few other tasks, so I'm going to have to be kind of brief.

... if google recommends me a $400 daily budget, yet my ad never costs more than $50 a day and I set my budget to $100 will Google only show it 1/4th of the time even though it never comes close to reaching my daily budget?

Yes, it's quite possible that this could happen. It won't be as precise as you've described it, but you've got the right flavor. Basically the system will think that it can't show your ad 24/7 without exceeding your budget, so it will space out the delivery of your ad by starting and stopping it.

A few days ago I had been hit with a drastic change in CPC that made me rethink my campaign, and I don't want to risk getting hit for what I was hit with before, so I toned down my daily budget, but I am afraid Google won't show my ad normally because of this.

If by "normally", you mean that it'll show 24/7, then you are correct. Your ad is not likely to show 24/7 if your budget is way below the recommended amount.

When Google sees that your campaign is under the daily budget, what does it go by to decide how to pace your ad for the day?

It takes into account lots of factors, many of which are changing from one moment to the next. The factors include your daily budget, your maximum CPC, your actual CPC, the number and quality of competitors you have from moment to moment, what they are doing with their budgets and Max CPC, and so on. The system is basically working to calculate from one moment to the next how often in can show your ad for the remaining portion of the 24 hour day, taking into account the competitive landscape, and without exceeding your budget.

... Now does this mean if I set my daily budget to $100, ($3000 monthly budget) that if for 29 days I spend half of that budget ($50 a day, $1450 overall), and for some reason my CPC goes nuts again, will it feel free to spend that $1550 remaining in the monthly budget in a single day?

No, that won't happen.

BTW, here's some related info from the AdWords Help Center

What happens if my daily budget is lower than what the AdWords system recommends?
[adwords.google.com...]

AWA

HitProf

8:21 am on Jun 24, 2005 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Thanks for answering AWA, it mostly confirms what I knew but I was reluctant to post because I wasn't completely sure and liked to hear the official answer.

>No, that won't happen.

Are you sure about that? What if an ad suddenly hits the content network let's say on day 28 of 31?

Related question: how come the dialy spend doesn't come anywhere near the daily budget if the latter is lower than reccommended? (It's on my wishlist to have the full budget spent).