Google has announced that from 4th October 2017, your AdWords campaigns will be able to spend double their daily budget in order to ‘help you reach your advertising goals’, such as increasing clicks or generating more conversions.
Although no official announcement has been posted to the Inside AdWords blog (unlike many big updates to AdWords), the ‘Charges and your daily budget’ section of AdWords Help has been updated. It explains: “Internet traffic is like an ocean. Some days, there will be small waves. Other days, there will be great big ones. So, if your ads don't show up much because of low traffic, then we'll make up for that by showing them more when traffic's higher.”
Put simply, this means that Google AdWords will allow up to two times the clicks in a day than your daily budget allows, and it could spend double your daily budget on a campaign during days when search traffic is higher; this is called overdelivery. This is something AdWords has always done, though the increase was previously capped at 20% (whereas it’s now 100%).
However, this doesn’t mean that you’ll accidentally spend more than your monthly AdWords budget allows over the month. Instead, Google will multiply your daily budget by the average number of days in a given month (which is 30.4 days), to determine what your budget should be over this period.
Google has also explained that if your ad is shown too much (and they deliver over your monthly budget), you’ll be credited any overdelivery costs you incur. For more information on this, check out the AdWords Help page on ‘Charges and your daily budget’.
The TJM take: The downsides outweigh the upsides here; we get why Google have made this change, but if an account is being closely managed, these changes can be made anyway.
The main downside is that CPAs will likely go up if Google is bidding much harder, and it will be campaigns and accounts with smaller budgets that are most likely to suffer. However, there is an upside for campaigns with a small amount of high quality traffic, as campaigns will be less likely to miss out. Nonetheless, this could just as easily be done by upping the overall budget anyway.
If you do have any questions on the update, just contact Traffic Jam Media!
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