AdWords Monthly Budget Now In Expanded Beta, Pros & Cons

By shanesnow
Published on November 5, 2008

Google AdWords recently expanded the monthly budget settings beta – it’s not available to everybody yet while it is available to more advertisers today than it was a short time ago. This feature adds a little more flexibility to the ad program and empowers advertisers with more control over their Adwords campaigns.

While a monthly budget may seem like the intuitive method of budgeting ad spend in the first place, the addition of this new option does not mean you should hurry up and change all of your campaigns to monthly in order to save yourself from having to do math. Until recently the amount of money spent on Adwords campaigns was throttled by a daily budget cap, and there can be distinct advantages to either budgeting method.

Advertisers can access this feature by clicking on Campaign Settings inside their Adwords account:

(Click to view screenshot)

The following outlines the advantages and disadvantages of each method:

Daily Budget:

  • Pros: You know exactly how much you will be spending each day. Unwanted fluctuations in cost or traffic can be leveled out.
  • Cons: Opportunities for traffic are capped by your budget. You may miss out if some good press or other external factor causes a huge lift in traffic for a day, or several.

Monthly Budget:

  • Pros: Months with large fluxuations of traffic can be taken advantage of – you don’t have to lose out on an opportunity if a sudden spike in traffic comes your way.
  • Cons: You can wipe out your whole budget for the month very fast.

The ability to show ads evenly over time or at an accelerated rate is still available for both options, and advertisers are free to switch between options as well. The new addition of the monthly budget simply gives advertisers more freedom. This could be especially helpful to businesses that wish to monitor monthly goals more easily than before.

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