One of the most regularly discussed topics with my PPC clients is the difference between the daily budget and the actual spend.
The AdWords daily budget is the maximum amount that your campaign will spend per day (averaged over the period of a month)
The actual spend is the amount of cost spent on clicks in a day.
All seems very simple, you may think, but sometimes it’s difficult to get across the need to increase daily budget, so that you can get more clicks, but that it won’t necessarily spend that additional amount every day.
Explanation:
The easiest way to explain it, is that there are not an even number of searches per day and statistically you may get more clicks on one day than another.
Let’s set up a typical situation.
You have a daily budget of £10 per day and tend to get 4 clicks @ cpc of £2.50.
Statistically, rather than getting 4 clicks per day, there will be some days when you get 5 and other when you’ll only get 3. This means that you will miss out on 1 of those clicks on the day when there were 5.
If you were to raise your daily budget to £12.50 per day, then you would pick up that extra click on the day there was 5, but will still only spend £7.50 on the days that there were 3.
Overall, even though you have increased your daily budget to £12.50, your actual average spend is still £10.
Still confused?
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