Major Changes to How Google Spends Your Budget

20/10/2017
Out of the blue came the news last week that Google has doubled the ad spend amount a company can use per day for its advertising campaigns on AdWords. While some people would see it as an effort by Google to increase its revenues, some brands would like to think it as Google milking them dry. The answer lies somewhere between both the extreme spectrums.

Out of the blue came the news last week that Google has doubled the ad spend amount a company can use per day for its advertising campaigns on AdWords. While the announcement was not publicised across the digital media, the fact remains that this update can have plenty of significant implications for brands. While some people would see it as an effort by Google to increase its revenues, some brands would like to think it as Google milking them dry. The answer lies somewhere between both the extreme spectrums.

The new update has been in force since October 4 when this announcement came. In simple words, if your budget is $500, Google can decide to spend twice the amount. It’s not a loot from Google but helping you to reach your goals efficiently with the help of Big Data.

Some advantages of the AdWords policy changes:

1) Companies will be able to reach their advertising goals faster.

2) In the long run, a company’s effective marketing spend on Google AdWords will not increase as Big Data deploys the ads depending on the traffic on that particular day. For example, if the traffic on a day is very high, Adwords will present more ads; and if the traffic is less, it will show fewer ads.

3) There is nothing to panic, and the process is nothing more than an over-reach where Google tries to reach as many prospective customers as possible.

Major disadvantages of the new rule:

  • You will never come again under your monthly advertising budgets.
  • On days when the traffic is high, your costs could swell up to 100% from the previous 20%.
  • By increasing the budget limit cap from 20% to 100%, it is possible that a full month’s advertising budget can get over within fifteen days.

Agencies which do daily tracking of their advertisement’s performance will be disappointed to see some sporadic numbers in the tracking month. As fluctuations will go in both the directions, it is prudent to inform your management and clients beforehand. While the money spent will be a little more than before, the increased clicks would more than compensate. As the policy applies for a full month (30.4 days), experts believe it will lead to a minor loss for those companies which do not advertise for the whole month.

The daily budget changes by this rule but there are three other changes which will reset the monthly budget.

    By changing the last date of the campaign.

    By changing the mode of ad delivery.

    By choosing a time zone different from the current one in an AdWords account.

While companies will spend a little more than their average monthly balance, they will be happy with the fact that it has translated into more clicks and eyeballs. With a definite increase in revenue, brands won’t be hesitant in advertising on AdWords. Lastly, there is no losing party in this game, as it is a win-win for both Google and the Brands.

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