Limited by budget. Are they serious about this?

[rlopes]

So I have a campaign with a $5/day budget, and Google Ads is suggesting me to change it to $10.

What I don't get is that due to my keywords being low in volume, my spending hardly reaches $3 a day.

Will it make any difference if I raise my daily budget?

[RhinoFish]

If you never hit your current limit, you don't need to raise it.

I usually look at the max spending day in the last 60 days, and assuming I never hit the limit, I set the daily budget limit to 1.5 x Max Spend.
As the campaigns get bigger and bugger, you ca decrease the 1.5x down towards 1.2x.
Meaning, if I spent $276,000 on the highest day, I'd multiply that by 1.2x, not 1.5x.

Give it enough budget to run on great days, because, if you become Budget Limited on those good days, your spend is very inefficient!

[Note: if you are a budget based bidder (I'm a ROAS based bidder), my daily budget method will be too high for you.]

[rlopes]

Thank you for your reply!
Why do you think they send this warning if I am so far from hitting the daily limit?

[RhinoFish]

Did you see how I explained that the larger the daily spend is, the lower the % above you need to leave for the chance of a heavy day?
That's why.
If you are spending ~$3 / day on average, limit $5, you could easily have an odd day here and there that spend $7.

And, as they loosen all keyword match types, and eventually remove all of the other levers (device, geo, day, hour, etc), they plan on increasing your spend for you, so they need you to raise your limit a little.
:-)

[Kendo]

Ha! I had a $6.60/day budget and was getting billed $9-10/day.

Culled that by adding some negative keywords.

[RhinoFish]

The budget limit will help you stay under the daily limit, for the month, on average.

That's why G is allowing you to exceed the $6.60 on some days, it's not actually trying to limit your spend EACH day to $6.60, it is instead seeking to keep your average daily spend for the month under that limit.

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