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Google Adwords – How does Google spend your budget?

By July 21, 2018 No Comments

AdWords have helped promote brand awareness and promotional offers for business for many years, and most of us know it has always been down to the budget that determines how successful your Adwords will be. However, only recently, as 2017 has come to an end – Google has changed the way in which AdWords work.

Google decided to change the way in which they use your daily ad expenditure; the search engine will be able to double your average regular budget for you to reach a sufficient amount of customers to meet your advertisement goals. – if they believe it will turn out worthwhile for you.

Paid search, how does it work?

This may sound scary; I mean surely it’s worrying knowing that Google is managing your expenses. However, this search engine knows what it’s doing. You can see it as reliable, artificial intelligence. Google isn’t out to primarily steal your money, it wants your AdWords to succeed, and therefore it will match your budget to meet a valuable amount of customers.

Google used to follow your fixed budget strictly, but now it has changed, but how does it manage your money? The artificial intelligence of Google’s search engine has been programmed to understand SERPs and AdWords and how a reasonable budget can promote you to an even bigger audience. If you have paid Google £200 for instance, to reach a relatively right amount of customers, Google can double this to £400 if it believes you will have greater success by implementing this budget. Although Google has always been able to increase your budget this figure used to only stand at 20% however, since the update in Google AdWords, we can now say they’ve maximised this percentage to 100%.

The real question to anyone, however, is, how much do you trust Google’s AI? Will you be willing to let an online algorithm determine the budget of your Adwords? Well, many entrepreneurs do believe in the system’s rules and think we should as Google chooses how successful your Adwords is, so if you see that it has spent more than you bargained for – the results will show.

This introduction to duplicating budgets is called ‘over delivery’, and it can be pretty cost-effective. How is this so? Well, if you think about it, there can be days where thousands of people and that day search your primary keyword would be when Google decides to up your budget to reach optimum potential. There will also be other days were only 100 people search for your key term which then means Google will not tamper with your set budget – this is all in an attempt to make sure you get the most out of your money, they don’t like you to waste any of it and no use it all for that matter.

In further detail, you can expect your budget to rise significantly when Google acknowledges a peak day for your ideal, customer audience and you will undoubtedly see results from such an investment. However, it isn’t all that bad, if Google’s AI notes that a specific day will not be valuable for you it will underspend on your AdWords. But before you worry, this doesn’t mean you won’t hit as many people as intended; you will still be provided with the same ratio, it’s just Google’s new way of adapting how our AdWords work.

It takes a lot of time and research to understand the full fundamentals of AdWords as this is why most people employ an expert to deal with them. AdWords need to be successful for you to have a compelling ROI and although Google is looking to make money anyway, it will extend or reduce your budget to help you get the best results.

Despite the benefits, Google is sometimes only perceived to be in it for themselves. They want to get as much money out of you as it can, and although it will get you the awareness you’re after, you can find yourself spending more than you originally planned.

Taking up an AdWords campaign is always a gamble, there will either be a high or negative ROI from your expenditures, and it will be down to how nice Google is willing to be and how much money you are putting into AdWords overall. There are mixed opinions towards using Google AdWords, and in theory, no ideas are wrong.

Google’s AI is in control of your AdWords, and although it has excellent intelligence, there’s no room for sentimental emotions, if it wants to double your budget, it will do so, and you will be left having to pay it, even if you did not achieve the results you intended for.

With the new, 100% ‘over delivery’ update, Google AdWords has created a minefield for everyone. Where once you were safe with a minor 20% increase on the cards, Google now has full control over your AdWords and if it wants to rinse more money from you, it will. However, don’t go assuming Google is working against you, it isn’t – although they want to make money themselves they aim to help their customers to their full potential. They need to keep their brand’s name in the good book; therefore you shouldn’t assume their way of handling things to be incorrect.

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