Google Ads May Introduce Monthly Spend Limits

Google Ads have announced a lot of exciting new features and insights that have got marketers and advertisers talking. As of the 1st of June, Google are trialling Monthly Spend Limits on a limited number of Google Ads Campaigns.

This groundbreaking announcement from Google has the potential to change the way advertisers look after their Google Ads accounts. This new feature is going to simplify the way we manage multiple campaigns while trying to keep to a monthly budget.

Let’s take a look at how this new feature will change how advertisers manage their campaigns and how a typical PPC Agency should be responding…

How did Google Ads spend work before monthly budget limits?

Before the idea of monthly budget limits were introduced to PPC Campaigns, every campaign in Google Ads was required to have a set daily budget. With this daily budget, you could show Google how much it should spend per day to average out to a predicted monthly spend. However, depending on the temperament of the ads auction, your predicted monthly spend could rise and fall and often could leave you spending more than planned.

This is because Google is programmed to dynamically adjust your spend for the day based on what’s needed in order for you to perform. Google says that Internet traffic is like an ocean. There are going to be days where there are small waves and other days where there will be big ones. So, if your ads aren’t showing as often because of low traffic, then Google will make up for that by showing them more when traffic’s higher.

However, if the cost of bids goes up due to factors like competition, then you can easily go over that daily budget consistently. This will eventually result in your monthly budget being exceeded.

Google Ads allows each PPC campaign to spend up to twice its daily budget on any given day.

What are Monthly Spend Limits in Google Ads?

According to Google, a monthly spend limit is the “maximum amount you can pay for a campaign over a month.” How it works is it will take over your campaign’s daily budget to stop at a certain limit. As of the 1st of June, marketers and advertisers can change or disable their Monthly Spend Limits at any time which is groundbreaking for advertisers managing multiple campaigns while trying to keep to a monthly budget.

Once enabled, Google will automatically pause your campaigns if your account reaches its spend limit. This will prevent you from going over budget on your campaigns. It works similarly to lifetime budgets on Facebook, monthly budget limits in Google Ads allow you to layer on an account level monthly spend cap on top of your daily budgets.

The benefits of Daily budgets with a monthly spend limit

With the new monthly budget limit, you can:

  • Now you can finally effectively manage how much you’re spending in total on Google Ads
  • Whether you have one or many campaigns, you no longer have to pinpoint where the spend is spiking. The monthly spend limit will be a safety measure to ensure you don’t “overdo” it.

The drawbacks of Daily budgets with a monthly spend limit

While the monthly spend cap and daily budget work hand in hand, your monthly spend limit will override and stop your campaign from running if you hit your monthly limit. This means that:

  • If you have a low spend limit and your campaign hits it halfway through the month, then your ads will stop running for the remainder of the month.
  • It may be difficult to manage larger accounts balancing multiple daily budgets on top of the monthly spend limit.

How to Set Up A Monthly Spend Limit in Google Ads

If you are eligible to take part in the trial, follow these steps to set up a Monthly Spend Limit:

  1. First, sign in to Google Ads and go to the “Billing” tab in the toolbar.
  2. Along the left-hand billing menu, select “settings.”
  3. Here, you’ll be able to create a Monthly Spend Limit. When you turn on a monthly spend limit, Google Ads allows you to input a maximum amount that all your campaigns could potentially spend in the month.


What Basics Make a Good PPC Agency?

There’s a quick handful of key areas your PPC Agency should always be on top of such as:

  1. Do they have access to first-party data sources to better understand your audience?
  2. Do they use numbers to strategise new tactics? Do they value data, analytics and results?
  3. How focused are they on mobile optimisation surrounding your search ads?
    Are they only tied to one channel? Remember there’s not just search, there’s social, programmatic, shopping, multi-channel PPC campaigns and more to choose from and making sure they know which one will work for you and your audience is key to success.
  4. Do they understand purchase intent – do they focus on the “commercial keywords” and know which of the combinations are the right keywords for a user who is in buying mode?
  5. As a PPC Agency, are they also able to offer you CRO? Getting traffic and clicks is one thing, but do they short from a conversion point of view?

In Summary

This exciting change will come as a relief to a lot of marketers and advertisers, especially those who manage multiple accounts and campaigns. It may take some getting used to but managing budgets is now easier than ever before.

If you are on a tight budget then this feature is going to give you some breathing room since it’s been designed to help folks maintain control of their overall advertising costs. It is important to remember that to implement a monthly spend limit, you’ll need to still have your daily budgets set up.

How can Brave help you with Google Ads and PPC?

Brave is one of the leading Brand Activation & Digital Performance Agencies in the region, helping brands develop lead generation and strong E-commerce businesses to reach their true potential. We have a strong core client base in the East Midlands, covering the Peterborough, Cambridge and Northampton areas as well as a handful in the North as well as London.

Our PPC and Marketing team offer a fully managed integrated approach across all major search and social media platforms for your business. Being an integrated agency, our clients range from national E-commerce brands to local service providers. Our PPC results speak for themselves… Just through Google Ads alone, we have generated over £10 Million for our clients!

For more information, contact the team today.

Written byJamie Flett

Google Partner
Facebook Marketing Partner
Microsoft Ads