Google Ads Budgets and Bidding

Budgets

Budgets on Google ads are set at a daily level, averaged over a month, i.e., some days you may be under your daily budget and some days above, but over a month, you will not overspend. A Shared Budget option allows you to distribute one budget across multiple campaigns, with Google automatically adjusting the budget allocation.

Ad Delivery Method

Within the budget setting, you can choose if you want Google Ads to pace how often your ads are shown. There are two options:

  • Standard. Campaign budget is spread evenly through the day (or times when your ads are scheduled to show). Your ads will be seen throughout the day, but they may not always display as Google holds back delivery to ensure the budget lasts the entire day.
  • Accelerated. Delivery is not optimised to help your budget last through the day, but instead, it aims to ensure ads will show as often as the auction allows. Depending on the budget, the ads may not show all day.

Bidding Options

When running Google campaigns, you have the option of managing bids manually or using Google’s automatic bidding tools. With Google’s automated bidding, you are charged on a CPC basis, but Google will automatically alter the bids based on its estimation of the likelihood of a conversion to meet a specified goal.

Whilst some advertisers still prefer the control they get from managing campaigns manually, automated bidding is a time saver. Furthermore, automated bidding is based on machine learning and so will improve over time. Automated bidding strategies include:

  • Target CPA (Cost per Acquisition). You set your target CPA (how much you are willing to spend per conversion), and Google will try to set bids to meet that CPA target.
  • Target ROAS (Return on Advertising Spend). This strategy aims to maximise revenue or conversion value based on the target return on ad spend you set.
  • Maximise Conversions. This strategy tries to get the most conversions within your daily budget.
  • Enhanced CPC (ECPC). This strategy raises the max CPC in auctions that the algorithm predicts are more likely to convert and lowers the bid in auctions considered less likely to convert.