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The Importance of Daily Budget Spend, & What to do With an Overspending Budget

By: Abdi Morrison

Analyzing and managing the daily budget spend of your Google Ads campaign is an important part of Google advertising. There are two factors to campaign budget management that are important to consider during your analysis. The first factor is making sure your campaign spends the full daily budget allotted to it. The second factor is figuring out how to adjust your manual or automated bidding strategies so that you can get the most amount of clicks possible with your budget.

How to Get Your Campaign to Spend Its Full Daily Budget

It’s important to make sure that your campaign is spending the full daily budget that you assign to it. Regardless of how large or small that budget is, you want it to be spent entirely because that will allow you to get the most amount of clicks possible for whatever daily amount you set for the campaign. The more clicks your ads receive, the more likely they are to bring in conversions for your business.

An effective way of getting an automated bidding campaign to spend more is to remove any restrictions placed on the bid strategy. Removing a CPA or ROAS target from your max conversion or max conversion value bidding strategy is a great way to get your campaign to spend its budget more freely.

Our agency was running a non branded campaign for one of our ecommerce clients, and we saw that the campaign had been spending more money than it was generating in revenue. We decided to set a target ROAS of 400% for the campaign to address this issue. We were able to achieve a positive ROAS for the campaign, but the aggressive ROAS target severely reduced our daily ad spend. This campaign had a daily budget of $25 and it had only been spending a dollar a day over a 2-week period. We needed to significantly increase the ad spend so we lowered the target ROAS to 105%. The results of this experiment are shown below.

Selection 1 = 4x target ROAS || Selection 2 = 1.05x target ROAS

The campaign went from spending a dollar a day to spending $24 a day. The increase in ad spend resulted in a much lower ROAS so we decided to raise the target ROAS to 200% to increase the campaign’s profits.

How to Get More From Your Campaign With the Same Daily Budget

If you have a $100 a day budget, and your max CPC bid is $2 per click, then you could hypothetically get 50 clicks a day with that ceiling placed on your bid. If you saw that your campaign was easily spending its daily budget, then you might consider lowering your max CPC bid to see if you can increase the amount of clicks you get in a day with that same $100 budget. If you lowered the max CPC bid to $1 per click, then hypothetically the number of clicks that you may get in a day is 100. The number of potential clicks that you could receive would double, and so would the number of leads that you could potentially get from those clicks.

Our agency has been running search ads for an ecommerce client and we saw that one campaign was consistently spending 100% of its daily budget. We wanted to know if decreasing the bid would increase the campaign's ability to get more traffic, so we decreased the max CPC bid from $2.50 to $2 per click. The results of this experiment are shown below.

Selection 1 = $2.50 max CPC performance || Selection 2 = $2 max CPC performance

The decrease in average CPC resulted in more clicks and impressions during that 15-day period. 

In Conclusion

There are many ways to increase your campaign’s daily ad spend. There are also many ways to maximize your campaign’s performance without having to change your daily budget. The manual and automated bidding strategy examples shown illustrate some of the approaches that you can take with the budget of your Google Ads campaign. Google Ads budget management is an important aspect of campaign/account management, and it’s valuable for advertisers to understand how they can get the most out of their campaigns and their daily budgets.

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