NEW Google Ads Budget Pacing Update

Okay, so check this out. Google Ads has rolled out a new update starting March 1st. I don't think this is a universal update. So I believe they're going to roll this out. But you're going to want to keep an eye out on your account if you're using ad scheduling. So ad scheduling would be, you know, you have certain days or times that you fire ads. You don't fire them. 24. 7. So we have a lot of E commerce clients. We're running pretty much 24 7. This would not impact us but our local service based business clients that are only running like Monday through Friday or maybe they have like special weekend hours only this would impact them and this would impact you too if you fit that. So Google's rules before and they're the same rules. It's just now Google's gonna change something in regards to this. But Google claims, hey, we can spend up to double your average daily campaign budget. So if you have a daily budget of a hundred dollars per day on a campaign, Google can spend up to 200. Right? It can, it can double that. So and this has been many years that Google has been doing that. And that allows Google to chase high converting days and you know, decrease on days that aren't as good. And it averages that out. Right. They also state you're never going to spend more than 30.4 times your average daily budget. So if your daily budget was $100 per day on a campaign, you would never spend more than 3040. Now if you're running Monday through Friday and you're not running the weekends, you're only spending five days per week. What happened before and many of you who are running accounts like this will know that you never actually came close to hitting 30.4 times. If I have an account that's $100 per day I pretty and I'm only running 5 days per week, I'm more than likely going to end up at $2,000 and spend maybe on the high end, 2,500 and potentially somewhere in between those. Right. But I wouldn't come close to this. 30.4 Google is now saying, hey, we're actually going to really push to hit this 30.4 times your average daily budget. Whereas before it kind of discounted the days you didn't run ads. So it didn't think too much about that and was just looking at then the days that you were running. Google's now saying actually no, if you're only running five days per week we're still going to try to average out a 30.4. What this means though is you're going to see your campaigns more than likely try to spend more, more often than what you're currently seeing now. And I actually could anticipate seeing some CPC increases on some of these accounts where the algorithm is just trying to push more spend to try to hit this 30.4 times your average daily budget. So if you're used to sort of the consistency that you've had with budget pacing while running ads, you know, with an ad schedule. So again, using my example of just running ads Monday through Friday, $100 per day you could expect, I'm probably going to spend 2,000 on, you know, up to 2,500 on the high end. If you didn't, after this rolls out, if you didn't touch anything and you let it sit at $100 per day, five days per week, it would more than likely hit this 3040, which would be a 30.4, obviously times that 100. You more than likely are going to end up spending closer to that 3040 than what you did before due to this change. So this is a greedy, another greedy move by Google in my opinion. They just saw an area where advertisers or their own sort of algorithms were not, you know, pushing what they wanted. So this is another move by Google to try to get more spend in accounts, in my opinion. So if you're using ad schedules, make sure starting March 1st, keep a very close eye on how those budgets start pacing. Keep an eye out on your average cpcs. I do expect many of you who are running ad schedules, you're going to want to decrease your daily budget. Now for our clients, I don't want to immediately jump the gun. So we're not going to just go in and drop budgets. But what we will and we fine tune budgets throughout the month anyway. So this you, I don't think this will be too big of an issue for those that are like actively managing campaigns daily. You just might have to do a little more budget pacing control now than what you did before. But for those that you know are a little more risk averse here and you're like, I don't want my spend to potentially jump up like that. You might want to decrease your daily budget then down in anticipation for this Change rollout starting March 1st. And again, I don't know if this is universal. I think it's going to happen in stages and if any of this is confusing, I'm sorry, I tried my best. Hopefully there's some visuals on this video too. That might explain some of this, but I will link this blog post from Search Engine Roundtable. I think they did a pretty good job. And then they have Jenny. She is like the Google Ads person and there's her LinkedIn conversations here. There's a few examples that she gives in this blog post as well. If you want to like learn more more, read further into it. If I didn't do a good, good enough job clarifying how this could work. But even if you're still a bit confused, just know starting March 1st, if you use an ad schedule, keep an eye out on your budget pacing because Google could get more aggressive. More than likely they will based off what they're saying here, and you could end up spending more than what you are used to pacing. Before this change.