Setting and Managing Budgets

Setting Budgets in AdWords

The budget you set is up to you. You can edit your budget or view the recommended budget on the Settings tab for your campaign.

If you're a client manager and your client accounts are using Manager Defined Spend (MDS), you can modify the client's budget on the Budget tab of your MCC dashboard.

To help guide your budget choice, Google calculates a recommended daily budget for each campaign. This recommendation is the daily budget necessary for your ad to appear as frequently as possible for your keywords.

The recommended daily budget includes a detailed budget analysis of your campaign performance, typically from the past 15 days. Based on your recent performance, our system can estimate how a new budget amount can affect the number of ad impressions you could receive. The recommended amount can vary based on your current budget, your recent campaign performance, keyword list, and targeting settings.

Here's a basic idea of how your recommended amount is calculated:

1.Determining your total potential impressions

2.Comparing potential impressions with your recent performance and costs

3.Combining daily estimates

4.Tempering recommended amounts to allow for testing

A higher budget can increase how often your ad is shown, which can result in more opportunity for clicks and conversions. However, setting your daily budget to the amount we recommend is entirely optional. You're always in full control of your AdWords account.

Again, note that Google may allow up to 20% more clicks in a day than your campaign's daily budget specifies. However, our system makes sure that in a given billing period, you're never charged more than the number of days in that billing period times your daily budget.