Google Announcement: AdWords Campaigns Can Now Spend Up To 2x Your Daily Budget

Big news broke this month from the world of Google AdWords when Google announced that your AdWords campaigns can now spend up to two times more than their set daily budget on days with “lots of high quality traffic”. This is a change you can not opt out of and it will take place automatically with no warning.

This  sounds like a grim scenario but there is no need to panic, Google has always done this albeit on a smaller scale. Before this change on days of high quality traffic your account could spend 20% more than the set daily budget. You would never be charged more than your ‘monthly budget limit’ which is your average daily budget multiplied by the average amount of days in a month (30.4), and this is still going to be the case now that your campaigns can spend up to 2x their daily budget.  

So if this isn’t going to cost anything extra, why is it such a big deal? Well it could actually be viewed as a positive thing. By allowing campaigns to over deliver on days where there is “lots of high quality traffic” it could potentially mean more valuable traffic and more potential conversions. This would be balanced out against the rest of the month with daily spend lower on lower traffic days, so you would never see your full monthly budget limit spent too quickly thanks to Google’s algorithms.

That’s not to say this entire thing is one big positive which is only going to lead to more conversions though. If Google is showing ads when traffic is higher this increase in traffic could have been caused by anything.

As an example let’s think about Google Shopping campaigns, which run from a data feed which is processed daily at least. Let’s say you have a product which is low in stock and it is similar to something seen on TV and peoples interest in this product peaks when it is shown on TV. You could have a sudden surge of traffic and sell the remaining products, but as the feed does not update until a set time you would still have customers clicking through your ads to find a product is out of stock and spending your budget. This could potentially be seen as “high quality traffic” despite having sold out of the product as you have converted from this traffic, so your ads could be allowed to ‘over deliver’ for a product which is out of stock.

It’s not a scenario you’d face too often but the fact is it is possible and it does happen, and now with this change your campaign can spend more budget while chasing this traffic.

This means the need for account optimisation is more important now than ever. A properly optimised account could perform much better than one that is not optimised if it is allowed to overdeliver. An optimised account is more likely to cut irrelevant terms out, bid correctly and target the extra spend towards relevant terms which are valuable to your business.

Is your account properly optimised and ready to over deliver? If you’re not sure, why not fill out the form below for a FREE AdWords Account Review and see how working with a Google Premier Partner agency shortlisted for the 2017 UK Search Awards can benefit you!

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