For years, advertisers have been looking for a way to keep their Google Ads spend under control aside from daily budgets and bid caps.
Well finally, it’s here!
Google recently announced that as of June 1, advertisers will be able to set monthly spend limits at the account level. This is groundbreaking for advertisers managing multiple campaigns while trying to keep to a monthly budget.
So how does this new feature work? Are there any drawbacks you need to know? I’m going to cover all that and more in this post. Read on to learn:
>How the Google Ads monthly spend limit works.How it compares to daily budgets.How to set up a monthly budget in your account.What you need to know to get the most out of this new feature.
This way you can determine whether this new feature is one that you should apply!
What are Google Ads monthly budget limits?
Functioning similarly to lifetime budgets on Facebook, monthly budget limits in Google Ads allow you to layer on an account level monthly spend cap on top of your daily budgets. This is the first time in history we’re truly able to control our spend at the account level!
As mentioned above, this is groundbreaking for advertisers managing multiple campaigns while trying to keep to a monthly budget.
By definition from Google, a monthly spend limit is the “maximum amount you can pay for a campaign over a month.” How it works is it will override your campaign’s daily budget to stop at a certain threshold.
Because this will be set at the account level, if you’re running multiple campaigns, you’ll want to account for all of them when setting your limit. This means that, while monthly spend limits will be a stellar money-saving tool, you won’t want to take advantage of it to the point where you restrict your performance by setting that monthly limit too low.
How Google Ads spend worked before monthly budget limits
Let’s quickly refresh on what spend on Google Ads looked like prior to this new tool.
Before monthly budget limits, every campaign in Google Ads was required to have a set daily budget. That daily budget guided Google on how much it should spend per day to average out to a projected monthly spend. However, depending on the temperament of the ads auction, daily budgets would ebb and flow—even spending higher than anticipated.
This is because Google is programmed to dynamically adjust your spend for the day based on what’s needed in order for you to perform. For example, if you set a daily budget of $10, you may end up spending $8 one day and
By: Susie Marino
Title: Google Ads (Finally!) Rolls Out Monthly Spend Limits: What You Need to Know
Sourced From: www.wordstream.com/blog/ws/2021/05/26/google-ads-monthly-spend-limit
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