Understanding & Managing Your Google Ads Budget | Google Ads Basics Part 2

John: 00:00:11

Google's gonna do this.

John: 00:00:12

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

John: 00:00:21

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

John: 00:00:27

16 days.

John: 00:00:29

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

John: 00:00:33

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

John: 00:00:44

let's talk about daily budgets.

John: 00:00:46

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

John: 00:00:50

or people believe or may know.

John: 00:00:54

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

John: 00:01:04

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

John: 00:01:08

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

John: 00:01:11

when we're like adjusting budgets.

John: 00:01:12

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

John: 00:01:14

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

John: 00:01:19

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

John: 00:01:21

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

John: 00:01:25

expect to spend most of it, if not all.

John: 00:01:27

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

John: 00:01:31

than $36,480 for this campaign.

John: 00:01:34

Does anybody know what this is actually saying?

John: 00:01:37

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

John: 00:01:39

Let's keep it kind of fresh.

John: 00:01:40

Does anybody know what?

John: 00:01:41

And take a guess.

John: 00:01:42

Does anybody know what this is actually saying?

John: 00:01:44

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

John: 00:01:47

regardless of how much you spend.

John: 00:01:49

Bingo.

John: 00:01:50

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

John: 00:01:54

only be billed for 36,480.

John: 00:01:56

It will not bill UA Penn anymore.

John: 00:01:58

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

John: 00:02:01

uhoh campaigns, overspending, uhoh campaigns, underspending.

John: 00:02:04

Here's a good area to look into.

John: 00:02:06

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

John: 00:02:11

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

John: 00:02:15

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

John: 00:02:20

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

John: 00:02:25

So 3,760 put 41 cents.

John: 00:02:27

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

John: 00:02:30

Why is this 8 cents cheaper?

John: 00:02:31

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

John: 00:02:34

so we refunded you instantaneously.

John: 00:02:36

So that's the difference between these two.

John: 00:02:38

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

John: 00:02:40

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

John: 00:02:42

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

John: 00:02:44

In case something starts to overspend without you actually needing it

John: 00:02:47

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

John: 00:02:51

is actually not the build cost.

John: 00:02:52

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

John: 00:02:56

Now.

John: 00:02:57

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

John: 00:03:00

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

John: 00:03:03

much it's actually spending.

John: 00:03:05

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

John: 00:03:10

and is not hitting daily budgets?

John: 00:03:12

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

John: 00:03:14

Everyone spend a full budget?

John: 00:03:15

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

John: 00:03:18

This is the reaction that Google is going to have.

John: 00:03:21

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

John: 00:03:25

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

John: 00:03:28

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

John: 00:03:30

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

John: 00:03:33

Look at last seven days segment by time and by.

John: 00:03:38

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

John: 00:03:42

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

John: 00:03:48

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

John: 00:03:52

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

John: 00:03:56

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

John: 00:04:00

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

John: 00:04:04

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

John: 00:04:09

10, 1, 2, 10, 14.

John: 00:04:12

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

John: 00:04:15

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

John: 00:04:19

Google's gonna do this 400.

John: 00:04:22

Times 30.4.

John: 00:04:24

30 times 30.4, 13,000 0 7 2.

John: 00:04:29

So Google is going to spend in 16 days.

John: 00:04:38

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

John: 00:04:39

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

John: 00:04:45

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

John: 00:04:47

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

John: 00:04:50

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

John: 00:04:52

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

John: 00:04:56

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

John: 00:04:59

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

John: 00:05:03

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

John: 00:05:06

free, no obligation action plan.

John: 00:05:08

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

John: 00:05:12

thumbs up and subscribe to our channel.

John: 00:05:14

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

John: 00:05:16

that I know what I'm talking about.

John: 00:05:17

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

John: 00:05:19

hit me blowing the comments.

John: 00:05:20

And now back to your regularly scheduled program, your actual

John: 00:05:25

daily ad spend will spend.

John: 00:05:28

$817 a day.

John: 00:05:31

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

John: 00:05:33

all of a sudden it overspends?

John: 00:05:35

This is the reason why.

John: 00:05:37

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

John: 00:05:41

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

John: 00:05:46

As long as you don't change the.

John: 00:05:48

You change the budget on day seven to 100.

John: 00:05:52

Perfect.

John: 00:05:52

Reset the whole thing.

John: 00:05:53

Day.

John: 00:05:54

$100 a day.

John: 00:05:55

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

John: 00:05:59

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

John: 00:06:03

on the last day of the month.

John: 00:06:05

Anybody have any questions about this?

John: 00:06:08

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

John: 00:06:14

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

John: 00:06:18

you make a change to the budget.

John: 00:06:20

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

John: 00:06:22

like, oh my God, it overspent.

John: 00:06:24

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

John: 00:06:27

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

John: 00:06:30

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

John: 00:06:35

And John Google will charge full, right?

John: 00:06:37

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

John: 00:06:41

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

John: 00:06:46

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

John: 00:06:51

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

John: 00:06:57

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

John: 00:07:03

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

John: 00:07:08

it to spend on no matter what day for.

John: 00:07:11

That's what you will be charged.

John: 00:07:13

Crazy, right?

John: 00:07:14

Budget is not just a daily budget.

John: 00:07:16

It goes against algorithmic distribution of how Google

John: 00:07:19

wants to spend that ad spend.