Tips for Setting the Right Daily Budget in Adwords

In this blog, we addressed the concern of customers regarding the daily budget for Adwords campaign. Setting the appropriately daily budget in AdWords is performed at the campaign level.

While it is easy to enter a budget figure like $60 to set this, the problem is knowing which is the right level. If you get the level too low, say $90, your ads won’t be displayed throughout the day. If you set the level too high, at say $300, you may be spending more than you have available in a monthly or yearly budget and your budget will be used up before you hoped.

Google will try to help by setting a Recommended Daily budget, but remember that this is only an approximation. Google AdWords generally errs on the side of not spending too much of your budget, which means that it is recommended daily budget may be an underestimate of what is required to display your ads all the time. The result could be under budgeting, which is where your ads are not displayed throughout the day because your specified budget is too low.

This means that it is best to use an iterative process to set the right daily budget. You can gradually increase the Recommended Daily budget, in this example in $25 increments, until you reach the maximum budget you are prepared to pay daily or the actual amount spent is no longer increasing.

You will need to experiment with and review the Recommend Daily Budget in Google Adwords to maximize the display of your Ads or to set actual amount spent at a required level.

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