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AdWords provides you with all the facilities to manage the bids and budgets to result in maximizing the return on investment. You are able to place and replace the bids and budgets for the campaigns anytime you wish to do so.


Setting the budgets


You will generate a lot of ad campaigns for your business. But to invest in every campaigns and ad groups you will need to have a budget adequate to finance them all. Again, you might have budget constraint. So, it’s vital to assign the daily or monthly budget for each of the campaigns. Invest to the campaigns that have potential positive outcomes. Try to save your dollars. Because it doesn’t mean that, if you spend more, you will get more.


Assign the amount you want to spend on every campaign daily or monthly. Interestingly, AdWords allows you to set and reset the budgets anytime. As a result, you can adjust the budget, according to the objective, to the point essential to get back the most of your expenditures. AdWords suggests you to spend lower if you are new to online marketing. It helps out to catch the most profitable campaigns.


There might be some campaigns that are already generating profit. But you should still monitor them to see if they have more earning potentiality. If so, increase the budget for those campaigns by lowering the budget for non-performers. AdWords provides you with “recommended daily budget” on this regard. It assists you to modify changes in order to get more traffics and clicks.


What actions consider a budget change?


If you change the amount of target expenditure, either for daily or monthly, it will said to be a change in budget. Beside these intentional changes, some more actions are considered material. For example, if you change the deliverance mode, time zone, or end date of your campaign, AdWords will count this as budget changes. The delivery modes will be discussed later on.


Changed budgets


So far it’s been cleared that you can change your advertisement budgets in AdWords anytime. But these changes will have different upshots on the campaigns –


  • If the budget is changed once during the mid-day, it’s easy to adjust the expenditure for the first half of the day. You may expend 50-70 percent of your daily budget in the morning if your ad’s demand is facing an upward trick and the rest of the budget in the remaining day. Even you may wish to spend 50 percent more in the second half of the day resulting in expenditure beyond your daily budget. No problem, AdWords will adjust the budget with the monthly expenditure set by you.
  • If the budget is changed more than once during the day, it will charge you with the highest amount of budget of that day. So, be careful while increasing the budget.
  • If the budget is changed once during the whole month, it will charge you monthly with the amount spent this month so far plus the new budget set multiplied by the number of days left in this month. If the budget is changed more than once during the month, it will charge in the same manner.


Using “Standard Delivery” mode than the “Accelerated Delivery” mode


To plan your budgetary spending more effectively, accelerated delivery method should be replaced with standard delivery method. Standard delivery mode will show your ads equally during the day considering the budget. In contrast, your ads would be showed more in the first half of the day. As a result, you will have a budget constraint for the campaigns limited by budget at the second part of the day and you will drop some efficiency and potentiality. So, standard delivery system will automatically adjust the budget for the whole day and lower the average CPC.


Costs exceeding the budget


It may cost you more than the budget. It’s possible only in case of daily budget. Suppose, AdWords has tracked that your ads are getting a lot of traffic on certain time of a certain day i.e. holiday, weekend etc. So, it will place your ads mostly at those times of those days. It will cut more than the daily budget (up to 20%) set by you but will adjust with the monthly budget by showing fewer ads on the time failing to generate a reasonable profit.


So, if you how to manage the campaign budgets and master the strategies, you can easily succeed in your business. AdWords helps you with the tools to maximize the return on investment by minimizing the cost.


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