Google Ads Daily Budget: How To Decide on Budget Per Day?
What is a Daily Budget in Google Ads?
A daily budget in Google Ads is basically the amount you decide to spend each day on a particular ad campaign. Google uses this budget to keep your spending in check so you don’t go over your set monthly advertising budget.
How Does Your Google Ads Daily Budget Work?
Google Ads operates on a daily budget system, where you set a daily spending limit for your ads. Google then uses this limit to manage how frequently your ads appear each day.
Understanding Google Ads Daily Budget and Monthly Charging Limits
When you set a daily budget in Google Ads, such as $10, Google displays your ads until this amount is reached in clicks or impressions, then stops showing them for the day.
Occasionally, your spending on a single day might exceed your daily budget by up to 20% due to changes in traffic, like increased searches on certain days.
Nevertheless, your monthly charges won’t exceed 30.4 times your daily budget, thanks to Google’s monthly charging limit. If your spending surpasses this limit, Google Ads will credit the excess back, ensuring your budget isn’t exceeded.
Maximizing Google Ads Through Effective Budget Management
Understanding your daily budget in Google Ads is key for several reasons:
- Control Over Ad Spend: Setting a daily budget helps you manage your spending effectively, ensuring you don’t exceed your marketing budget. This control allows you to predict the maximum amount you’ll spend monthly.
- Flexibility: Google Ads offers the flexibility to modify your daily budget anytime, allowing you to adjust spending based on ad performance. You can increase the budget to capitalize on well-performing ads or decrease it if they are not meeting expectations.
- Efficiency: A daily budget ensures your money is used efficiently, as Google uses it to optimize when and how often your ads appear, targeting the best times to reach your audience.
Setting Your Google Ads Daily Budget
To determine your Google Ads daily budget, start by assessing your total marketing budget, which includes all planned marketing expenditures. Next, decide the portion of this budget to allocate to Google Ads, considering your marketing objectives, business size, and industry competitiveness.
After setting your Google Ads budget, calculate your average daily budget by dividing the total monthly allocation by 30.4 (the average number of days in a month). Google offers tools like the Performance Planner and options to set maximum cost-per-click (CPC) to aid in managing this budget. For instance, a $500 monthly Google Ads budget gives you an average daily budget of about $16.44.
Determining Your Google Ads Budget: A Guide for Different Business Sizes
Determining the right Google Ads budget can vary greatly between businesses. It depends on your overall marketing budget and the value of each transaction.
For example, a car dealership with high-value sales might have a much higher ad spend than a clothing retailer. While some businesses might spend between $500 to $30,000 monthly on Google Ads, a typical midsize company often spends about $9,000 to $10,000. The investment per customer must be weighed against the potential return, as seen with a dealership where $20 per customer could be justified by a $20,000 purchase, unlike smaller transactions.
Mastering Your Google Ads Daily Budget
Understanding your Google Ads daily budget is essential for successful campaigns. By grasping what a daily budget is, learning to calculate your average daily budget, and knowing what to expect in terms of daily ad spend, you can make more informed decisions about how to allocate your advertising funds.