Last Updated on 28 May 2021 by SEO Manager
Is Google Ads Monthly Spend Limits an Important Issue for You?
Contact us Today to discuss your concerns and options !
Quick Read: For years, advertisers have been looking for a way to keep their Google Ads spend under control aside from daily budgets and bid caps.
Google recently announced that as of June 1, advertisers will be able to set monthly spend limits at the account level. This is groundbreaking for advertisers managing multiple campaigns while trying to keep to a monthly budget.
- How the Google Ads monthly spend limit works.
- How it compares to daily budgets.
- How to set up a monthly budget in your account.
- What you need to know to get the most out of this new feature.
What are Google Ads monthly budget limits?
By definition from Google, a monthly spend limit is the “maximum amount you can pay for a campaign over a month.” How it works is it will override your campaign’s daily budget to stop at a certain threshold.
Because this will be set at the account level, if you’re running multiple campaigns, you’ll want to account for all of them when setting your limit. This means that, while monthly spend limits will be a stellar money-saving tool, you won’t want to take advantage of it to the point where you restrict your performance by setting that monthly limit too low.
Is the monthly spend limit right for you?
In order to implement a monthly spend limit, you’ll need to still have your daily budgets set up. But, if you’re unsure whether a monthly spend limit is the right move just yet, let’s quickly compare how your campaigns would function with or without this feature.
While the monthly spend cap and daily budget work hand in hand together to optimize, at the end of the day your monthly spend limit will override and stop your campaign from running if you hit your limit.
This means that:
- If your spend limit is so low that your campaign hits it halfway through the month, then your ads will stop running for the remainder of the month.
- It may be difficult to manage for larger accounts juggling multiple daily budgets on top of the monthly spend limit.
- You’ll need to set aside time to stay on top of your monthly spend limit as it’s not just a “set it and forget it” type of feature. You’ll want to check on it in relation to your historical spend to ensure it’s not too high or too low.
Discussion Continues…: Read More