07 Nov 2017

Major Changes in Google Ad Words Effect Advertisers!
Google made a hush-hush announcement in which they revealed a major change in how they choose to allocate your daily ad spend. The change has shaken advertisers! Is the change in the favor of advertisers? Are they content with it? Let’s understand.

According to Google:
“Starting October 4, 2017, campaigns will be able to spend up to twice the average daily budget to help you reach your advertising goals.”

What does this mean?
Google has enabled campaigns to spend up to twice their average daily budget, this will help the advertisers reach their goals and maximize ROI (Return on Investment).
This means advertisements will be shown more often on days when search traffic is more, your total daily cost might be up to 2 times your average daily budget. This spending is balanced by days when the traffic is low and your spend is below your daily budget. This is termed as over delivery.
Advertisers should also note that you will not be charged more than your monthly limit, which is the number of days in a month multiplied by your average daily budget.

Are the Advertisers Happy?
This significant change by Google would help advertisers to hit their goal without costing more money. With Over delivery, if advertisers see a few really high traffic days early in the month it’s possible they may spend through their budget well before the month is over. Which implies that the campaign would pause in the middle of the month or would no longer run throughout the duration of the month.
Hence, many advertisers are not content with the concept of spending their monthly budget earlier than usual.
So it’s easy to see both sides of this dilemma. It is very important to understand and get updated to the changes for precise planning and functioning of campaigns.