Google to Implement Monthly Charging Limits in AdWords

Charging Limits Based on Daily Budgets

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Google announced today that it is introducing a monthly charging limit for AdWords campaigns, which is automatically calculated based on advertisers’ daily budgets. 

"Over the years, many of you have told us that you’d like to be charged a consistent amount each calendar month," Google’s Dan Friedman says on the Inside AdWords blog. 

"When your daily budget is unchanged throughout an entire calendar month, we’ll set a monthly charging limit for that campaign by multiplying your daily budget by 30.4, which is roughly the average number of days in a month Google AdWords - Monthly Budget Limits(365 days in a year / 12 months = 30.417 days/month)," he explains. "For example, if your daily budget is US$10 throughout a month, you won’t be charged more than $304 during that month (US$10 daily budget * 30.4 average days per month). As usual, actual daily spend may vary."

Google says it will transition to monthly charging limits over the next several weeks. When an advertiser edits their budget in the campaign settings, they will get a description of the change.

Google has an FAQ on the monthly charging limit here.

Google to Implement Monthly Charging Limits in AdWords
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  • Guest

    Oh God, what’s the catch? Who will pay the price? Advertisers or publishers? There is always a catch. And I’m sick of these companies delivering the “you have asked us and we’ve listened” BS. Sorry been on Ebay too long.

  • http://cathyhenry.com Cathy Henry

    Okay, so if I have set my limit to $10/day, my monthly charge should never be beyond $304 anyway. So what is the point of this announcement?
    Are they telling me that I am going to pay the $10/day whether I use it or not?
    Or,(more than likely) is this just another useless press release that means nothing but keeps Google in the news?

  • Guest

    Who asked and they listened anyway?

  • http://www.snerdey.com Snerdey

    Lately it just seams to me that they’ve lost the touch. It’s like someone new is handling things and the big ship is a stray in it’s own ocean of wealth. Loosing touch of reality and making things up as they go along. Kinda like the Government.. they are no longer human.

    Have a great day!

    Follow me on Twitter :)

    • http://cass-hacks.com Craig

      So you are of the opinion that Google just spent a sizable chunk of development costs to implement something nobody wanted?

      Google would be Yahoo if they did that. ;-)

  • http://www.billigfergebillett.no Ferge

    Ehhh… NOT.

  • Guest

    For years and for every campaign the cost has been precisely 30 and 31 times my daily budget. (or 28 and 29) How would this be different? I guess it will, be 30.4 times, DUH!

    Oh I get it!

    They’ll get a raise in February.

  • http://www.justinmarch.com/blog/ Justin March

    If its going to be a monthly budget why not call it a monthly budget. Do no evil huh.

  • http://www.pennystockspsychicsystem.com Reeder

    I being an Adwords client for site http://www.pennystockspsychicsystem.com, am now pondering what will be the end result, as Cathy stated above, will the daily average be charged, whether we use the budget or not, i apprehensively hold my breath!

  • http://www.foreveryoung.co.nz Brent and Shirley

    I would ask..how many get charged over their daily limit each month…it varies for us each month…this system it gaurantees income for google…same as the phone companies…

    • http://cass-hacks.com Craig

      “this system it gaurantees income for google”

      More to the point, what it guarantees is that you won’t be billed more than your budget and, you are more likely to use your budget.

      It would be nice to be able to also vary daily budget while maintaining a fixed monthly budget, for special promotions and the like but this is much better than what it was.

  • http://www.philipbusk.com Philip Busk

    I’d say for anyone actually managing an account this is not too useful. You have to basically leave the daily spend alone. Many accounts are going to have very different spends on weekends, holidays, etc.

    • http://www.promotionismybusiness.com Promotionismybusiness.com

      I am not entirely clear whether Google will give their Adwords customers a choice between daily and monthly limits or scrap the daily limits altogether in favor of monthly.

      This is especially important to a couple of my pay-per-click clients are going to hate this change because both have their entire spending patterns occur Monday through Friday. I know for a fact that if Google switches over from daily to monthly limits this will mean more work for me. Drats.

  • http://cass-hacks.com Craig

    The point as well as the devil, Cathy, is in the details.

    If I have a monthly budget of $30, it is more likely that I will get $30 of advertizing but if I have a daily budget of $1 and some days get very few ads placed and other days are capped by a daily budget, what happens?

    Maybe the point is that this is something advertisers have asked for for quite some time and Google is now rolling it out.

  • http://africatopforum.com africatopforum

    I don’t really get the News meaning as I haven

  • http://www.selectyourfranchise.com Joe

    I’m guessing the only real value here is that you know you won’t go over a fixed budget in any calendar month. Because calendar months vary in length i.e. 28-31 days, this has meant that your monthly budget can vary by…. yes you guessed it… [daily budget] X [number of days in that particular month]. With averaging over a year it would cap each month consistently.

    So if you are really that worried about going a few quid or dollars over in a calendar month its useful I guess.

    Its annoying though if you want consistency of budget spend per day. If daily budget will no longer be an DAILY budget but just a figure they are going to average out over a year, that must mean that in a longer month your actual budget per day will average less than a shorter month. Doh!


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