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You are here: Home » Documentation Help Center » Google adwords related issues » Manage advertising » Budget and bid » Why costs may exceed your average daily budget

Why costs may exceed your average daily budget

Views:0     Author:Site Editor     Publish Time: 2016-06-28      Origin:Site Inquire

  • On days when search traffic is high, AdWords will show your ads more often, maximizing yourReturn on investment
  • If this happens, your total daily cost may be up to 20% higher than your average daily budget. However, we will never charge you more than your average daily budget multiplied by the average number of days in a month (30.4).

Why campaign costs may exceed daily budget

You need to set a daily budget for each campaign, which is the amount you plan to pay for ads each day. If you find that the total cost of a campaign in a day exceeds your daily budget, this means that your campaign spends more budget on days with higher search traffic and spends on days with lower search traffic Less budget. There may be several reasons for fluctuations in search traffic: weekends or working days, or seasonal changes and holidays.

A deeper understanding of the daily budget on other days of the month can help you optimize your campaign’s performance and help ensure that your ads can be slightly increased on ad days when they are very popular.

How to charge when the campaign exceeds the daily budget

Depending on traffic fluctuations, on certain days of the week or certain periods of the month, AdWords may spend up to 120% of your daily campaign budget to display your ads, but your monthly campaign costs Will not increase.

Examples

If your daily budget is $10, depending on traffic fluctuations, AdWords may spend up to $12 on certain days to show your ads.

Please note that at certain times, your daily expenses may exceed the 120% limit, but you still only have to pay 20% of your daily budget for the excess. For example, if your daily budget is $10 and you accumulate $15 on a certain day, you only need to pay $12. The remaining 3 yuan asOverdelivery refund amountIt will be returned to you and displayed in the transaction history.

About the monthly fee limit

Although the cost of a campaign may reach 120% of the average daily budget on a certain day, AdWords uses a monthly cost limit to prevent you from accidentally overspending, so we will never charge you more than this limit. In other words, as long as your budget for the entire month remains the same, the amount you pay will not exceed your daily budget multiplied by the average number of days in a month (that is, 30.4 days: 365 days a year ÷ 12 months).

Examples

If your budget stays the same throughout the month, and you accumulate expenses in a natural month that exceed the amount allowed by your monthly limit, we will only charge you the monthly limit. For example, if your daily budget is always 10 yuan per day throughout the month (the monthly cost limit is 304 yuan), and you accumulate 310 yuan in a natural month, then you only need to pay 304 yuan. The calculation method is as follows:

10 yuan (daily budget) x 30.4 (average days per month) = 304 yuan

The remaining 6 yuan is used asOverdelivery refund amountReturned to you.

How budget changes affect monthly expense limits

If your daily budget keeps changing during a month, we will not use the monthly fee limit for that month (but the 120% daily limit will still be valid). For campaigns that are paused in the middle of the month or are unable to run for the entire month due to other reasons, there may be inconsistencies between your average daily budget and the total cost.

Examples

Let’s say your campaign will run for three days. The daily budget you set for the first day is 100 yuan, the second day is 120 yuan, and the third day is 150 yuan. Because the daily fee limit is 120%, you may need to pay up to 120 yuan on the first day, 144 yuan on the second day, and 180 yuan on the third day. This means that you may need to pay up to 444 yuan in this natural month. In this case, we will not use the monthly fee limit for that month.

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