AdWords overdelivery credit question

I need more info

[mmmtweak]

I was wondering if anyone would be so kind as to further explain the overdelivery credit notice that shows up in the account managment section. I've seen Google's definition of what it means but it is still a little vague to me. Is it just a way for Google to point out that an individual could be recieving many more clicks. If Google doesn't charge for these clicks, then why do they show up? Also, where in the account info do you get detailed analysis of this?

I hope this question makes sense. Thanks in advance for any help.

[vibgyor79]

Hi, Welcome to Webmasterworld.

Let me try to explain overdelivery credit with an example.

Assume that you have set your daily budget to $10 per day. Obviously you are expecting to spend around $300 a month. The software that controls your daily ad spend may sometimes show your advertisement even after you cross $10 per day (the software is probably not perfect).

Because of this, you may collect clicks equivalent to, say, $400 in a month. Anything over 20% of your budget for the billing period is credited back to you as overdelivery credit.

In the above example, your overdelivery credit will approximately be equal to -
[400 - (300 x 20/100)] = $40

In other words, you are basically getting free traffic for $40 (overdelivery credit amount).

Is it just a way for Google to point out that an individual could be recieving many more clicks?

Well... Not really.. its just that Google AdWords program overpeformed on that ocassion and they don't want you to overshoot your budget.

[mmmtweak]

vibgyor79

Thank you for the welcome and succinct reply. That clears things up for me quite a bit, I appreciate it greatly.