How to Set a Daily and Monthly Budget in Google Ads
When running paid campaigns in Google Ads, budgeting isn’t just about choosing a number, it’s about setting a clear strategy that balances reach, ROI, and long-term goals. Whether you're a small business or a large-scale advertiser, understanding how to set a daily and monthly budget in Google Ads can save you from wasted ad spend and ensure your campaign stays profitable.
1. Understanding Google Ads Budgeting Basics
Google Ads allows you to control costs in two primary ways:
Daily Budget: The average amount you’re willing to spend per day for a campaign.
Monthly Spend: Google calculates this based on your daily budget multiplied by 30.4 (average days in a month).
Important: Google may exceed your daily budget by up to 2x on high-traffic days but will not go over your monthly limit.
2. How to Set a Daily Budget in Google Ads
Follow these steps:
Go to your campaign settings.
Under the “Budget” section, input the daily amount you want to spend.
Click Save and monitor performance closely.
Tips:
Start small (e.g., $10–$50/day) and increase after evaluating performance.
Base your daily budget on your average Cost Per Click (CPC) and expected traffic.
3. Calculating a Monthly Budget
To estimate your monthly Google Ads cost, use this simple formula:
Daily Budget x 30.4 = Estimated Monthly Budget
Example:
$20/day x 30.4 = $608/month
You can also use Shared Budgets if you want to manage spend across multiple campaigns in one go.
4. How to Choose the Right Budget
Your budget should align with your campaign goals. Here’s a quick guide:
Campaign Goals
Brand Awareness
Low CPC, wider reach, larger budget
Lead Generation
Recommended Budget Strategy
Mid-sized daily budget, focus on Target CPA
E-commerce Sales
ROAS-focused with flexible budget scaling
5. Tools & Resources to Help Plan Your Budget
Google Ads Performance Planner
Google Keyword Planner (to estimate CPC)
Historical campaign data (if available)
Pro Tip: Use conversion tracking and Smart Bidding (like Maximize Conversions or Target ROAS) to let Google optimize budget allocation automatically.
Conclusion:
Setting a daily and monthly budget in Google Ads is all about understanding your goals, monitoring performance, and being flexible. Start with a manageable amount, test results, and scale what works. With the right budgeting strategy, you’ll avoid overspending and maximize the value of every click.
How Ads with Finesse Can Help You
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Learn more about our services today and turn your Google Ads into your most powerful marketing tool with Ads with Finesse.
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