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How To Set Your Google AdWords Budget

How To Set Your Google AdWords Budget


Your Google AdWords Budget is set at the account or campaign level. The campaign level option is the most common and it’s where you state the maximum amount you’d like to spend.


Setting this is pretty straightforward. Go to the campaign you’d like to add or update a budget for and click settings. In the budget section add the amount that you’d like to spend per day.


AdWords Budget Setting


You can also set budgets at the account level. You do this in the shared library section and create a budget portfolio that you can assign to one or more campaigns. This is the main advantage of using account level budget because it saves you a lot of time and helps you manage budgets easier.


To arrive at your daily AdWords Budget, you take your monthly budget and divide it by 30.4. So, if you’re looking to spend £3000 per month in your campaign, you’ll divide that by 30.4 to arrive at £98.68 daily budget.


(30.4 is the average number of days in a month)


That’s assuming you want to advertise on all days of the month. However, if you’d like to advertise on working days only for example, then that could be about 22 days your ads will be active. So your £3000 monthly budget will equate to a £136 daily budget.


However, there’s a difference between a budget and spend. Your budget is the maximum you want to put towards promoting your products or services on Google. The spend is the actual amount you’re charged in your campaign.


It’s possible to have a high budget but spend a very low amount. For example, if you have a monthly AdWords budget of £2000 and you only spend £800. This can happen if there aren’t sufficient impressions and clicks to use up all the budget or if ads are ranked low and appear at the bottom of the page or on page 2 and beyond.


It’s also possible to have a budget but overshoot it when traffic volumes are high. This will happen only on a daily basis, but you’ll not be charged more than your monthly AdWords budget. Google allows this overshoot, to help advertisers get quality traffic when it’s most important and also ensure that you’re always close to your maximum limit as some days are likely to be quieter.



Setting a Google AdWords budget is one of the important tasks you’ll do. So make sure you’ve done your keyword research and assessed how much traffic you’d like to receive and how many conversions from that.

I'm a Certified Google Ads 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 Ads.

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