What is overspend and underspend in PPC

Published at Sep 6, 2021

#Google Ads#PPC [pay per click] for busy people
What is overspend and underspend in PPC

What is overspend and underspend in PPC

What is overspend and underspend in PPC and how do you deal with it?

Overspend is when you spend more than your daily or monthly budget. Conversely, underspend is the opposite.

So how do you deal with this?

Overspend protection is dealt with ‘rules’. Each ad platform has its own way of creating and managing rules. What you need to be aware of is the spend volatility of the ad platform. Google Ads can be more volatile than Facebook Ads. It is known that Google Ads will spend more in the first days of each campaign and then normalize.

Practically you will have to create 2 rules for your Google Ads campaigns. One daily and one monthly.

Example

if your budget is $310 per month and $10 per day then the monthly rule should be $310 but your daily budget should be $15 in order to factor in the initial spend volatility.

Underspend, however, is somewhat tricky. Underspend can be the result of multiple factors such as automated bid strategies, strict keyword targeting, seasonality, etc.

Sometimes underspend is done intentionally by PPC professionals in order to adjust for long sales cycles.

If underspend is done intentionally, then it would be best to inform the client ahead of time.

If underspend is done unintentionally, then you should investigate the matter in depth.

Top posts in Google Ads

How to audit Google Ads campaigns

How to audit Performance Max campaigns

How to audit Search campaigns

mail icon

mail icon

mail icon

mail icon

PPC Panos © 2024