Google AdWords major change to budget handling…

In a seemingly innocuous email Google have just announced a major change to the way that your budgets are handled within Google AdWords. In the old days you used to set a budget per day and then Google would cap itself at that. In addition, if you had underspent the previous day it would carry this (limited to a fixed percentage of your daily budget) forward to increase today’s budget, in an effort to smooth out peaks and troughs.

Google are in the process of changing this and will now (assuming you leave your budget fixed throughout the month) spent up to a monthly budget of the daily budget that you have set multiplied by 30.4 (average number of days per month).

This is actually a positive change for most people as campaigns are often underspent due to peaks and troughs not being evened out over a month (often requiring people to set higher budgets than they wanted to). It is – of course – also a positive change for Google who have at a stroke increased their potential AdWords revenue considerably!

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About Gerald Thulbourn

Gerald Thulbourn setup WebSanity in 2004. He has a 1st class honours MEng in Microelectronics & Software Engineering (i.e. he's a techy), 5 A grades at A level (i.e. he works hard) and loves to communicate (i.e. odd for a techy). He hates tech speak, sloppy/badly tested code, and technology for the sake of technology's sake. He loves helping people understand marketing concepts and seeing how their application makes a real difference to their business. In particular he loves training; SEO, Website Analysis, WordPress etc. Read more about us on Google+