How to Decide Your AdWords Daily Budget

July 1, 2018
By: Mike
Comments: 0

Your AdWords daily budget is the maximum amount you’d like to spend a day. So if you plan to run your ads all month and your monthly AdWords budget is £500, your average daily budget will be about £16.44.

 

The formula for that is £500 divided by 30.4 to arrive at £16.44:

 

Monthly budget / average number of days per month = daily budget

 

Bear in mind that on some days you’ll spend more than your daily budget. In fact, that could be twice the amount of daily budget. This will happen on high traffic days to compensate for less traffic days.

 

So if you have a £20 daily budget, you could spend up to £40 on a busy day.

 

However, you’ll not be charged more than your monthly charging limit.

 

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Here are some points to help you decide on your AdWords daily budget:

 

AdWords Campaign Type

The type of campaign you launch will determine the AdWords daily budget. Search campaigns almost always have higher CPCs and will therefore require a bigger budget to get sufficient volumes.

 

It’s common to see average CPCs as high as £10 per or more:

 

AdWords Daily Budget

 

So such a campaign will need at least £1000 to get just 100 clicks. For your display, Remarketing and shopping campaigns, CPCs can be much lower and it’s still common to see 0.01p per click for shopping campaigns.

 

All this helps you determine the clicks you require and what daily budget that should be.

 

Current AdWords spend

Your current spend in AdWords each day or month should help you decide a good daily AdWords budget. If the spend is bringing in a good return then you should consider increasing the budget to get more of that.

 

If your spend is limited because of a low budget, then consider increasing the budget. This will increase impressions and clicks and hopefully lead to more conversions.

 

If on the other hand, you want to decrease click volume, you could reduce the daily budget and thereby reduce the spend.

 

Your monthly AdWords budget

If you know how much you’d like to spend each month, you can divide that by the average number of days per month, 30.4, to arrive at your daily budget.

 

So if you have a £600 monthly budget, you will allocate a £19.70 daily budget. If this is too low a budget then consider increasing it. Or run your ads on specific days of the week and then increase your budget.

 

Expected Traffic Volumes

If you have a target click volume and and an average CPC rate to reach, you can know what budget to set. For example, if you want to get 100 clicks per day and average CPC is 30 pence, then you should set a £30 daily budget.

 

However, bear in mind that CPCs fluctuate due to competition, time of day, device used and other factors. So you should factor this into your calculation and budget Setting.

 

Conclusion

A good AdWords daily budget will help you achieve your goals. It should be sufficient enough to ensure you hit your sales or enquiries targets while maintaining a profit. The tips listed above will help you achieve that.

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Mike

Google AdWords Expert
I'm a Certified Google Adwords Expert and Marketing Author and in this blog I share my latest tips and secrets on how to promote your business successfully on the web and increase customer loyalty, retention and advocacy on Google Adwords. Mike Ncube

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