Why It's Difficult to Manage Budgets Inside of Google Ads

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I wanted to explain why it can be difficult to manage

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budgets instead of Lord Google.

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You'll notice this particular campaign.

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I'm looking at the brand campaign and you can see 9 73 spent Sunday three

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grand spent Monday 1500 spent Tuesday, 2000 spent Wednesday 1800 spent

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Dwayne's day 16, Friday thousands.

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Now here's why I'm bringing this up.

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Google.

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Has a limited inventory and the inventory is cyclical in a lot of

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ways and there's ebbs and flows and spikes and peaks and valleys.

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And Google's actually done a pretty good job, I think at managing

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their inventory, they know what they have and when they have it.

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So when you give Google a daily spend, let's see, give Google a thousand bucks.

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What they're gonna do is they're gonna multiply a thousand dollars

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by 30.4 to get your monthly budget.

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And then they're going to say, great, I'm gonna spend that this month.

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And so what's interesting is if you're spending 30 grand a month,

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it's not a thousand dollars a day.

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It could be $5,000 today and tomorrow.

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And then it's going to bottom out and Google does that because it

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has a sense of, okay, well, I have this inventory available to me now.

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There's a big spike in inventory or whatever, and I'm also guessing, right?

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Because I don't know how they're all going to this bill, but this is important

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for you to know because Google is doing this on a month, over month basis.

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doing this calculation for the next 30.4 days.

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So when you make a budget change, Google's not averaging that out

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within the month that you're in.

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So like right now I'm recording this video on May 25th.

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Okay.

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Let's say that I changed my budget from a thousand dollars a

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day to $2,000 a day on May 25th.

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Google is going take $2,000 a day, multiply it by 30.4 and then say, okay,

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this is the budget for the next 30.4 days.

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Well, I am managing my budget on a month, over month basis,

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the way that everybody does.

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But let's say that Google decides to frontline.

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The increase in budget.

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Google could spend $20,000 in a day.

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It's unusual to see spikes that high, but it happens, but it happens.

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Big spikes happen.

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I've seen the spike that that's the significant, I don't want to

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overstate what I'm talking about.

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They used to have a rule.

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It was like 300% and then they took the lid off and now it's just like,

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whatever we decide, whatever we want.

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So if you make, what I'm saying is if you make a budget change at

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the end of the month, you could actually find yourself far exceeded.

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The budget that you've allocated for that month, because you don't know

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when Google is going to make the expenditures that they're going to make.

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And what ends up making things a little bit more difficult is you

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could be in a position to where you don't end up hitting that budget.

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So, we used to have these rules.

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We had, we, we tell people, especially with smart shopping, we'd

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say don't increase your budget any more than 10 to 20% week over week.

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It's not true.

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Performance Mexico changed everything and changed everything

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because Google can go outbound.

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So there's massive budget increases that are available and accessible to you.

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That may not impact the quality of your campaigns, but they may

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which is really frustrating here.

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So, like one of the questions you'd asked yourself is what's

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the time lag, meaning when are you going to experience , this change?

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Where are you going to feel the impacts?

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If you know, gosh, it takes 60 days before.

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My outbound traffic really turns into potential inbound traffic.

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So, the, the impressions, the brand building that I'm doing I'm not

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going to experience the results from that for 60 days, that knowledge

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alone should help you begin to pace your budgets, according to your

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expectations what's the bidding strategy.

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If you're a target CPA and.

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You're not spending any more already.

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It doesn't matter what your budget is.

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It doesn't matter if you can spend anything because you're

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there you've hit the ceiling.

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What day of the month is it?

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Where are we positioned?

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I'm trying to think about what else, , what's the account performance.

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There's other variables that come into play.

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And so you can increase budgets a little bit more significantly instead

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of performance max, and you can, instead of other campaigns and accounts, but

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You have to be cautious and you have to be willing to let Google jump around.

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Like I just showed him the little screen-share cause it'll bounce

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all over the place and it'll spend according to what it thinks it

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needs on a month over month basis.

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So your daily budget, I guess this is the take home message.

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And I could have gotten here a lot sooner.

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Forgive me, your daily budget is actually a monthly budget.

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It's whatever you've articulated in that day, multiply that by 30.4.

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And then Google is going to front end or back load, however it chooses necessary.

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So I hope this is helpful information for you.

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Appreciate all y'all subscribers.