These are 5 effective ways to manage your Google Ads budget – Pros and Cons, & Tips

Before you start writing your first PPC ads you need to plan how much money you will spend each month on new campaigns. When creating your budget for PPC campaigns you should consider traffic volume, expected performance, cost per click and local competition. But once you’ve got that PPC budget decided, how do you properly manage it in Google?

This is an incredibly complex question! Advertisers often have trouble avoiding excessive spending in Google Ads, once they are live. You have many options to manage your budget with Google Ads. Each one has unique benefits and drawbacks.

Continue reading to find out five strategies that will help you budget in Google Ads.

1. Daily budgeting campaign

The best way to manage Google Ads’ spend is by setting up a daily budget. You most likely created your first campaign in Google Ads with a daily budget. You can also use daily budgets in Microsoft advertising and Facebook ads.

Google Ads: How daily campaign budgets work

Each campaign can be assigned a budget in Google Ads. Rather than just inserting your annual or monthly budget directly into the campaign, Google asks you to calculate how much you’d like to spend each day. Divide your monthly budget by 30.4 (that’s the average number of days in a month) and set that as your daily budget for your campaign. Google will make sure that you aren’t charged for more than 30.4 times your daily budget in a month.

google ads set average daily budget

However, your campaign’s daily budget isn’t a cap on what you can spend on any given day. Google can spend as high as twice your daily budget per day. Google could spend more or less than your monthly budget depending on the amount of search traffic. Although on any given day, you may spend more or less than your budget, this will average out over the course of the month and Google won’t charge you more than 30.4 times your daily budget.

google ads budget strategies - average daily budget

Here’s an example of what your $10 monthly budget might spend in a single month. Google.

How do campaign daily budgets work in Google Ads?

Daily budgets are used by most advertisers for a good reason: They’re flexible and easy to control. With each campaign having its own budget, you can also adjust them at any time as you evaluate each campaign’s performance.

👆 Speaking of performance…

You can see how well your Google Ads campaigns perform with the Google Ads Grader is Free!

Which are the cons of campaign daily budgets in Google Ads

Google Ads accounts can have several campaigns. Each campaign may have a different daily budget. This makes managing total spending difficult. It can be hard to forecast exactly how much you’re going to spend if at the end of the month each campaign might spend between zero and twice your daily budget. Your account may grow in complexity and size, making it more difficult to forecast your spending. It can also be time-consuming to manage these budgets.

The Google Ads budget report may be useful for projecting your future spend.

google ads budget report - future projected spend view

For whom is the campaign budget best?

Small business advertisers who only run a handful of campaigns can benefit from daily budgets that can accommodate slight variations in the overall spending. A daily budget is also a good option for campaigns with a consistent high level of performance or those that require a dedicated budget.

2. Participating in Budgets

Google Ads introduced shared budgets in order to make it easier for advertisers to manage multiple campaigns from one account.

Google Ads: How do shared budgets work?

Instead of giving each campaign its budget individually, Google Ads allows you to create a shared budget and allow multiple campaigns to use the same budget daily. An example: Instead of each campaign having a separate $10 budget, an advertiser can set up a shared budget in Google Ads and allocate $50 to all five campaigns.

The campaigns share a greater budget every day, and each may spend an entirely different amount. Budgets shared by campaigns follow the same guidelines as budget daily budgets. Campaigns can overspend and underspend at any time.

google ads budget strategies - shared budgets

You can create a budget together by going to Tool and Setting Google Ads icons are located in the upper right corner. You can find more information about Google Ads from there. Select Shared Library > Participating in Budgets

google ads budget strategies - shared budgets

You can also create a budget here and use it for any of your active campaigns. You can add or remove a campaign from an existing budget.

Is there any benefit to using shared budgets with Google Ads

As your accounts grow, shared budgets will make managing individual budgets much easier. You can use them to allocate budgets between campaigns with different volumes. Campaigns that are larger will have the ability to draw from a shared budget, which allows for smaller campaigns who might underspend.

Which are the drawbacks to using shared budgets for Google Ads

One of the main drawbacks of sharing a budget is losing some control over individual campaigns. It is very unlikely that a $50 shared budget will be used for five campaigns, and each campaign would only spend $10. It’s entirely possible that one campaign might spend $48 of that entire budget, leaving the other campaigns hardly showing on a given day! A well-performing campaign with less volume might be “bullied out” of a shared budget by a larger campaign!

Additionally, campaigns that use some automated bidding strategies can’t be added to shared budgets. Google suggests creating portfolio bidding strategies to aid in balancing the goals of campaigns that share these budgets.

Which campaign are you most comfortable spending your daily budget on?

Advertisers who wish to simplify the management of multiple campaigns can use shared budgets. They’re particularly great if you have several campaigns that share roughly the same goal and expectation of performance.

Your best-performing campaigns—such as your branded campaign—might have great ROI even if they spend less than some other campaigns. For this reason, it’s often best to have some campaigns continue to have their own separate daily budget even if most of your other campaigns use shared budgets.

3. Campaign total budgets

Even if the campaign is only for a brief period, it can be difficult to budget daily. For some video campaigns, advertisers can create a campaign total budget An alternative to a daily budget is a monthly one.

Google Ads: How total campaign budgets work

A video campaign with a specific start and an end date will not require budgeting. These campaigns can instead be created with an individual campaign budget in Google Ads. From here, they can set the total amount that they’d like to spend on their video campaign during its limited run. Google will distribute your entire campaign budget until the deadline.

google ads campaign total budget

Which are the benefits of campaign total budgets for Google Ads

Total budgets for campaigns can almost eliminate the need to maintain a budget daily for these video ads. It also gives Google more flexibility to adjust what you spend on a given day to make sure that a slow day doesn’t prevent you from reaching your total budget at the end of a campaign.

Additionally, since the start and end dates are more flexible, you don’t need to fret over how Google splits your budget up during any typical monthly period.

Which are the drawbacks to using total campaign budgets in Google Ads

Campaign budgets cannot be allocated to video campaigns. Your evergreen campaigns can’t use campaign total budgets.

Additionally, you can not change your campaign total budget to a daily budget once it’s been created. This makes these campaigns using a total budget less flexible as they can’t easily be extended past their original end date.

Which campaign is best for total budgets?

For short-run campaigns, campaign total budgets are ideal with a predetermined budget. These are great for marketing an event or sale in the near future.

Automatic budget rules

Google Ads automates many tasks and can reduce their workload. Advertisers can use automated rules to monitor and adjust their budgets based on a set of predetermined criteria.

Google Ads: How do automated budget rules work?

From the campaigns tab in Google Ads, automated rules are hidden under the right-most “Continue reading” icon. From there, select “create an automated rule.”

google ads budget strategies - automated rules

You can now create a new rule. Effectively, you’re telling Google to Do some work You can find more information here Some campaignsGiven Some conditions, at It could take some time.  Vague? Let’s break that down:

  • Send an email to Choose whether Google will make these changes across all campaigns or just a few when the rule applies.
  • Take immediate action You want Google to do something for you. There are many options:
    • Allow campaigns
    • Pause campaigns
    • Change budgets
    • Change labels
    • Email
  • Conditions (optional). To allow Google to modify your account, what must you have to be true? You can set these rules to run based on the performance of these campaigns, such as how much they’ve spent or how well they’re performing at the moment.
  • Frequency is required How often would you like Google to run the rule and check for conditions? If there are no conditions set – then Google will always perform this action at time. The rules can be scheduled to run weekly, daily or even an hourly. It is also possible to schedule the rules so that they run one at a time.

This logic combined can make budget management much easier for an account. For example, let’s say you wanted Google to alert you and pause your campaigns if they ever spent over $5,000 a month. That task could keep a diligent account manager up late at night as they approach $5,000 at the end of the month – but an automated rule can let them sleep easy at the end of the month. Below is the rule:

Are there any benefits to using Google Ads’ automated budget rules?

Google Ads automation is not an easy subject. However, the automated rules can almost be infinitely flexible when managing a budget. They can alert you when your budget is nearing its maximum, suspend campaigns that are exceeding their budget, and adjust the budgets of campaigns based on CPA or conversions. This can be helpful for account managers to set their guidelines and avoid situations such as overspending or spending too much on a poorly performing campaign.

Are there any disadvantages to using Google Ads’ automated budget rules?

Although automated rules may be very useful, innocent errors can cause disaster. Whether you’re new to this type of automation or not, my best advice is to Read your automatic rule outload before hitting submit.

Say “I want you to Act Now You can find more information here These are the campaigns At Frequency So long! True condition You can use data from this time.” This sounds very mechanical, and it’s! A small error here could lead to very serious consequences. Raise your budget 10% every Hour if last month’s CPA was good? Yes, that can happen. It will also be hard to accept.

You should also inform your team if automated rules or other management tools are being used. These rules are designed to post these changes regularly and your team will be confused if these campaigns are starting or stopping without them while you’re on vacation!

For whom are the best automated budget rules?

For account managers that have many responsibilities, or who manage several client accounts, automated budget rules can be a great tool. They can be used as a safeguard to avoid overspending and will alert you if things get out of control.

You can start with simple automated rules, and as you become more comfortable you will be able to test other features.

Limits on monthly account spending

Google’s newest tool to manage your ad spend is its Limit on monthly account spending This was introduced slowly in 2021, but it is highly underutilized.

Google Ads: How Google Ads limits monthly spend

Google lets advertisers set their own prices Limit on monthly spending across all campaigns they have in their account. This will ensure that their campaigns don’t spend more than their monthly budget.

This spend limit is independent of all of your campaign budgets and will effectively stop your ads from running mid-month once you’ve hit this limit and not spend a penny more until the first of the next month. The next month your ads will start again and continue spending until you reach your monthly limit.

You can set a Google Ads monthly limit by selecting Tool and Setting Start by clicking the toolbar at the top. Billing > Settings. Here you can set the monthly maximum Google Ads spend and disable a spend limit for your account.

google ads budget strategies - monthly spend limit

Advertisers have the ability to change or disable your account spending limit, regardless of whether you’ve already exceeded it for the month.

Are there any benefits to using Google Ads monthly spend caps?

Limiting your monthly account spending is a good way to prevent excessive spending in Google Ads. Unless you’ve got a very flexible ad budget, setting a monthly account spend limit in your account can prevent Google from running away with the combined campaign budgets across your account.

What are the drawbacks to using Google Ads’ monthly limit on account spending?

Monthly account limits are a hard stop to ALL of your campaigns if they’ve been spending too much mid-month. Even your best performing campaigns or your upcoming campaigns won’t show ads once you’ve hit your account spend limit. The account spend limit is a very powerful tool – so be mindful when you set it! If you’ve got flexibility to continue to spend in Google Ads if performance is good, then be sure to set your monthly spend limit high or consider passing on this feature.

Who are the best monthly limit spends for?

Advertising agencies can set an account spending limit in order to keep from overspending their budget. Keep in mind that an account spend limit isn’t a replacement for proper campaign budget management! You’ll need to continue to optimize each campaigns’ budget to ensure you’re getting the best ROI out of your ad spend on Google Ads.

While there’s no one “right” way to manage your budgets in Google Ads, there are a number of different strategies and tactics to use to avoid accidently overspending your limited ad dollars. We’ve covered the following strategies in this blog post.

  1. Budget campaign
  2. Participating in Budgets
  3. Campaign total budgets
  4. Automatic budget rules
  5. Limits on monthly account spending

You should consider how much your total budget is and the number of campaigns in order to determine what budget strategy works best. Remember that strategies may change over time as your accounts grow. So make sure you revisit them regularly.

 


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