Google Ads Monthly Spend Limit Is Finally Here

For two very long decades, advertisers around the world have requested for a Google Ads monthly spend limit. It is only now that that request was delivered upon. On June 1st, advertisers will now be able to set a Google Ads monthly spend limit at the account level.

Why is this such a big deal? Why should you care? Besides automatically pausing your campaign once your account reaches its spend limit, preventing the possibility of spending more than your total budget? Well for starters, the only way for an advertiser to set their Google Ads monthly spend limit previously was by setting a daily limit. The problem with daily limits, however, is that the number of days in a month vary from another, resulting in varying ad spend. To work around this, there were two methods: First, you can calculate the average amount of days in a year, by dividing 365 days by 12 months, giving you 30.4 days. If your daily spend is $10/day and your monthly ad spend was $300, you would need to increase it $304/month. The second method was to let your client know that their budget will vary. In the scenario above, this would be between $300-310/month or $280-$290 for the month of February (depending if it is a leap year).

Another issue that daily limits pose is fluctuations. In 2017, Google announced that their platform can charge up to 2 times your daily spend. For example, if your daily budget is $10, and you’ve spent only $5 today. Google can allocate that extra $5 to another day, increasing it to $15. Where the problem lies is if the cost of bids rises due to competition, you may find that your campaign spent more than your total monthly budget. This is called overdelivery. Monthly spend limits, however, prevent any further charges to be incurred.

Should you use Google Ads monthly spend limit?

So now it begs the question, “Should you start using a monthly spend limit on Google Ads?” The answer is… it depends.

  • Do your campaigns or your monthly budget require a hard stop for month-to-month costs?
  • Do you manage several campaigns?
  • Would you like more control over your campaigns?
  • Do you want more control over your Google Ad budget?

If you answer ‘yes’ to any of the above, you should consider using a Google Ads monthly spend limit.

How to set up Google Ads monthly spend limit

Remember, this feature resides at the account level. Any campaigns within the account are also affected. To enable follow these steps:

  1. First, login into Google Ads.
  2. Locate and click Billing in the top right-hand corner. A drop down-menu will open.
  3. Click Settings.
  4. Once you’re at the Settings page, locate the option to create a monthly spend limit.


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