Will you need to pay closer attention to your AdWords spend?

Will 'over-delivery' in AdWords end up costing you?

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When it comes to advertising, budgets and spending your money on these ventures, keeping track is important. If you are going to take the risk and shell out, you need to make the best possible chance of getting the best return on your ‘investment.’

A new change made by Google recently may well be able to get you a better return on investment but at the expensive of spending more daily budget. Is this really so however? Read on to find out more…

The change started on 4th October 2017 and means that any AdWords campaigns you have could spend up to twice your daily budget in an attempt to gain extra steps towards your goals (by this we mean things like clicks or conversions which make a difference to your campaign.)

How will this work in practice?

The aim is that you won’t be regularly spending twice your budget, but more a balancing exercise should occur. If AdWords sees you are receiving traffic which is high in quality, it is likely to go beyond your limits. This will be cancelled out by the days when your spending is lower thus over time, there should be a balance. This practice is called “over-delivery.”

Before people start worrying, it is unlikely that people will end up with massive bills, as the monthly charging limit mechanism is in operation, ensuring that this absolute limit is adhered to. In the unlikely event that this doesn’t work and you are left out of pocket in some way, Google will ensure they will credit you the difference.

At first this looks quite worrying. Many people are probably thinking why set a daily budget if this is going to be breached and end up costing the customer more?

They say sometimes in life you need to look at the bigger picture, and this bigger picture is the monthly AdWords billing cost. If the aim is to get you extra conversions across the month at no extra cost to you, then this can only be a win/win situation and it is definitely a change to ensure that paying customers get the best possible value.

So if you have seen this piece of news you can relax a little knowing you won’t be racking up hundreds of pounds extra. We advise you keep an eye on your monthly charge however as mistakes sometimes can happen!

Learn more about our clients and the type of projects we work with by visiting our case studies section.

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