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Understanding & Managing Your Google Ads Budget | Google Ads Basics Part 2
8th January 2023 • The Google Ads Podcast • Solutions 8
00:00:00 00:08:26

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Are your Google Ads campaigns overspending? Luckily, John is here to help you manage your Google Ads budget by sharing everything from common mistakes advertisers make when setting budgets down to how the algorithm calculates the daily ad budget.

Once you understand how your ad budget is calculated, it will be easier to set a realistic budget, stay on track, and make sure you're not wasting money on ads.


This is the second part of the Google Ads Basics series, if you haven’t seen the first part where John shares the basics of conversion tracking so you can set yourself up for success, you can watch it here: https://youtu.be/KiPVfGWBtdg


PS: This guide series is from an internal Solutions 8 training. We’re sharing everything with you, our dear subscribers, to show our gratitude for the overwhelming support you’ve given us. We value you and your growth with Google Ads. 🖤💚🤍


Related videos:

How Much Budget vs. How Many Products? https://youtu.be/BfYbg2JUfaw

😭 Why It Can Be Difficult to Manage Budgets Inside of Google Ads https://youtu.be/Kx7ICoLiZ7o

💰 Performance Max for Small Budgets https://youtu.be/kFbKjSILv4w


0:00 Intro | Google Ads Basics Part 2

0:40 Understanding & Managing Your Google Ads Budget

2:27 What to look into if you’re under or overspending

6:07 Work with the best Google Ads agency on the planet

7:51 When your ad budget resets



Do you have questions about Google Ads? Ask us in REAL TIME every FRIDAY, 1 PM PT!

Be a member of our channel by clicking the JOIN button to access the Live Q&A chat. Here's the link to our Dec 9 Google Ads Live Q&A: https://youtu.be/sKK2UX5YyY4


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This ULTIMATE GUIDE gives you EVERYTHING you need to know about how to set up, build and optimize your Google Ads Performance Max campaigns: https://sol8.com/performance-max/


🤖🦾🦿 The Ultimate Guide to Google Ads Performance Max for 2022 (Part 1-3): https://youtu.be/oXoFn7dUvL8

https://youtu.be/_mOv9_qrtpg

https://youtu.be/syadgcDVntU


Want to learn more about Google Ads Performance Max? Here's the link to all our PMax guide videos:

https://youtube.com/playlist?list=PLp...


🧐 Do You Have What It Takes to Be John Moran’s Right Hand? If So, We Need Your HELP! https://youtu.be/4Kcf-IHVbAw


🔎 Other Job Opportunities at Solutions 8 - Client Managers, Google Ads Specialists, and Strategists:

https://youtu.be/9TziUBrF_hs

Apply here: https://sol8.com/apply/


💯The Ultimate Guide to Google Ads for Lead Generation:

https://sol8.com/google-ads-lead-gene...

🛒 Everything you need to know about Google Ads for eCommerce:

https://sol8.com/google-ads-for-ecomm...

🧲 The only guide you’ll ever need for Google Ads for YouTube:

https://sol8.com/google-ads-for-youtube/


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👉 Want to become a Google Ads expert?

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Learn how to build, launch and manage high-performing Google Ads campaigns in our STEP-BY-STEP Google Ads Course: 👉 https://youvsgoogle.com/

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Transcripts

John:

Google's gonna do this.

John:

430 times, 30.4, 30 times 30.4 13,000 0 7 2.

John:

So Google is going to spend 13,000 0 72 in.

John:

16 days.

John:

So Google says, I am going to take whatever daily ad spent you give me, and

John:

if you don't change it, I have 30.4 days to spend that regardless of what happens.

John:

let's talk about daily budgets.

John:

The daily budget It works differently than what I think people expect

John:

or people believe or may know.

John:

The daily budget is reset on a 30.4 day time period after every change.

John:

What that means is that if you have a $300 per day budget,

John:

cause I think this is something that we've run into as sort of an issue

John:

when we're like adjusting budgets.

John:

So things overspend and under spending, we go, wow.

John:

the non-brand BSA campaign, and this non-brand DSA campaign is

John:

set at a budget of $1,200 per day.

John:

This budget of $1,200 per day is running on maximize conversions, so

John:

expect to spend most of it, if not all.

John:

What you'll see here is in October, you won't be charged more

John:

than $36,480 for this campaign.

John:

Does anybody know what this is actually saying?

John:

I'd love to hear, and I'd like to keep this interactive.

John:

Let's keep it kind of fresh.

John:

Does anybody know what?

John:

And take a guess.

John:

Does anybody know what this is actually saying?

John:

That's how much you'll probably be billed for during that period,

John:

regardless of how much you spend.

John:

Bingo.

John:

So , if this campaign can spend 75 million, I'll still

John:

only be billed for 36,480.

John:

It will not bill UA Penn anymore.

John:

One way to take a look at this, so we're talking about like

John:

uhoh campaigns, overspending, uhoh campaigns, underspending.

John:

Here's a good area to look into.

John:

Go into reports, predefine reports all the way down to other, and then go into build.

John:

What this will show you is what the campaign spent and what you were charged.

John:

Now, not always is an overspend not gonna charge you, and I'll tell you why,

John:

but it says, Hey, on Google, we spent, or we, served $3,700 worth of ads.

John:

So 3,760 put 41 cents.

John:

We only be able to do 3,760 and 33 cents.

John:

Why is this 8 cents cheaper?

John:

Well, we actually found three clicks that were 3 cents that were fraudulent,

John:

so we refunded you instantaneously.

John:

So that's the difference between these two.

John:

When you have a crazy overspend, sometimes you'll see this be like

John:

5,000 and your build cost is 3,800.

John:

Share this with your client if that's the case.

John:

In case something starts to overspend without you actually needing it

John:

or wanting to overspend and share this with them, that hey, this

John:

is actually not the build cost.

John:

Your billing does not reflect what the actual ad spent in Google Ads is.

John:

Now.

John:

when's the difference between when it will and well, when it will not overspend well?

John:

That's gonna be dependent upon the bidding strategy and how

John:

much it's actually spending.

John:

Does anybody have a campaign that has a T Row as or A T C P A on

John:

and is not hitting daily budgets?

John:

Does anybody have one of those that I can pull up?

John:

Everyone spend a full budget?

John:

Here's something that I want, I wanna share with you all.

John:

This is the reaction that Google is going to have.

John:

this is something that we've, kind of gotten bit in the butt for a few times.

John:

And so I wanted to cover it on basics here, which again, is more advanced . But

John:

anyway, here's, let's have some fun.

John:

So last seven days, for example, here's what you want to do.

John:

Look at last seven days segment by time and by.

John:

and if there's no changes, Glenn, I'm just going to assume that this is

John:

trying to spend $430 a day and really spending 1 68, 1 0 8, 77 53 50, 36 54.

John:

I'm gonna give you all a scenario and this is what you can.

John:

If this is on October, I was gonna do this ten one.

John:

It's been $430 per day is the budget.

John:

Now let's pull this up here and see what has been spent.

John:

$882 has been spent, since $882 has been spent.

John:

10, 1, 2, 10, 14.

John:

And what I'm assuming right now is that we just set these budgets on day one.

John:

So let's just all assume I set, $430 budget on day one.

John:

Google's gonna do this 400.

John:

Times 30.4.

John:

30 times 30.4, 13,000 0 7 2.

John:

So Google is going to spend in 16 days.

John:

because that's what's left over in the month.

John:

So Glenn, if you turned off your T Roz and kept at $430 a day, this is not a glitch.

John:

I'm interrupting the video you're watching because I need to remind

John:

you that I'm always looking for people to join our team.

John:

So if you're passionate about Google Ads and you wanna work with the best

John:

Google Ads agency on the planet, please go to so late.com/apply.

John:

Speaking of working with the best Google Ads agency on the planet, if you're

John:

having trouble with Google Ads and you want professional, That's what we do.

John:

You can go to so late.com, that's s o l eight.com to apply for your

John:

free, no obligation action plan.

John:

And if I've given you any level of value at all, maybe think about giving me a

John:

thumbs up and subscribe to our channel.

John:

That's how we juice the YouTube algorithm, so they actually know

John:

that I know what I'm talking about.

John:

If you have questions, comments, concerns, or confessions,

John:

hit me blowing the comments.

John:

And now back to your regularly scheduled program, your actual

John:

daily ad spend will spend.

John:

$817 a day.

John:

Does anybody experience this where they take up a T Row as and

John:

all of a sudden it overspends?

John:

This is the reason why.

John:

Google says, I am going to take whatever daily ad spent you give me, and if you

John:

don't change it, have 30.4 a days to spend that, regardless of what happens.

John:

As long as you don't change the.

John:

You change the budget on day seven to 100.

John:

Perfect.

John:

Reset the whole thing.

John:

Day.

John:

$100 a day.

John:

I could spend $3,000 for the next 30 days.

John:

If I wanna spend five bucks in 29 of those 30 days, I'll spend $3,000

John:

on the last day of the month.

John:

Anybody have any questions about this?

John:

That reset of the budget is that rolling every on the first of every single month.

John:

And that's just universal That's when it resets it, it resets anytime

John:

you make a change to the budget.

John:

So that's why sometimes we'll make a change on the 17th and that's

John:

like, oh my God, it overspent.

John:

Well, your new month just started from the 17th to next month, 17th.

John:

it's a live active, it doesn't have days of the weeks or months.

John:

It just 30.4 is your month, no matter what day that lands on.

John:

And John Google will charge full, right?

John:

for that day, let's say if it over spends by 600.

John:

So it spent thousand dollars, So if you said the budget is $500, , but you were

John:

lagging behind because your bidding strategy was restricting you and it spent

John:

$2,000 in one day bill cost, or what it's gonna build a client is $2,000.

John:

But remember it told you that's what it's gonna spend because it took whatever

John:

budget you had, multiply by 30.4 and say, we're gonna charge you this if we can get

John:

it to spend on no matter what day for.

John:

That's what you will be charged.

John:

Crazy, right?

John:

Budget is not just a daily budget.

John:

It goes against algorithmic distribution of how Google

John:

wants to spend that ad spend.

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