Google’s Major AdWords Updates in October
Google just recently released two major AdWords updates, and the community is not entirely happy with the changes. Taking to forums everywhere, people are voicing their concerns about these new changes.
Is this change actually bad or are people just reluctant to see change happen?
Change 1: Automatic 200% AdWords Daily Budget Increases
You might as well go ahead and take your Google AdWords exam because the 20% answer is out of the door!
This month, Google announced “more flexible daily budgets”. What they mean by this is that your daily budget can increase by double, based on what Google perceives as better performance.
Google has always allowed some budget increases based on “low hanging fruit”. If a valuable click was in sight, Google would allow your budget to increase by 20% of what the daily budget was. That being said, Google would (and still will) maintain your monthly budget despite the occasional daily overages.
What does this mean?
Since Google does not allow for monthly budget suggestions, they take your daily budget and multiply that by the average day in each month.
That comes out to 30.4 days (365.24/12).
So if your daily budget was $50 then the monthly budget would max out at $1520, but within that month your budget could have increased to $60.
Now – the daily increases are much more. If you now have a daily budget of $50 then your monthly max would be $1520 but your daily budget could increase up to $100 on any given day.
How could this affect you?
The double daily increases could substantially affect businesses that want to change their budget throughout the month, or that rely on their ad spend more at the end of the month than throughout the month.
Suppose your budget changes frequently in order to capture more leads at different times – this will throw off the overall monthly budgets. So if you change your budgets once or twice throughout the month, it could actually run over the designated budget through daily budget increases. See below:
Monthly budgets are based on a 30.4 day cycle. You start your campaigns on October 1st for $50 per day. On October 14th (14 days into the initial 30.4 day cycle) then your average resets. See below:
Changes were made in the example above to maintain the $50 daily average but due to the 200% resetting with each change, the monthly budget now ends over $250 MORE than the expected amount.
Quick Tip: I always manage AdWords campaigns with a +/- 10% expectation on ad spend to provide some padding. The above example is outside of that amount so you still need to be cautious!
Car dealers are notorious for trying to increase sales at the end of the month. Supposing there were a couple 2x daily budget increases each week for the beginning three weeks then your budget could potentially be very small at the end of the month, if you do not try to manually change that spend! There may not be a lot of budget left to push people into the dealership at the end of the month!
Is it really flexibility or is it automation?
Google claims it is making these changes to be more flexible, but those that try to maneuver their budgets throughout the month will lose that flexibility. There is quite a back and forth on these: https://searchengineland.com/google-adwords-twice-daily-budget-spend-283897
Change 2: Google AdWords Ad Recommendations
Say goodbye to set-it-forget-it. What’s more, say goodbye to ignoring Google and their pesky suggestions!
This October, Google has released a new Suggested Opportunity, but this time with a twist.
For years, Google has been providing suggestions in the opportunities tab of your AdWords display.
They gave keyword, budget and extension suggestions and recommendations for splitting ad groups into several individual ones. They even came out with Campaign Health Scores (https://searchengineland.com/google-adwords-account-health-score-test-256626) last year to try to push people in the direction to use these suggestions.
These suggestions came from other advertiser and keyword patterns but did not always apply to you. And if they didn’t apply to you – then you just didn’t accept these recommendations.
Now, though, AdWords is now going to provide Ad Recommendations that deal with Ad Copy. They’ll provide you suggestions on new ads based on trends in the industry for better performance. The twist here is that you have 14 days to decide and if you don’t choose those changes or reject them then Google will automatically apply those to your account!
That’s right – they’ll automatically adjust your ad copy to fit the recommendations.
Quick Note: This is just launching and not all accounts have been affected but it will roll out across all accounts.
I guess this could be nice for a business that doesn’t want to touch their ads and aren’t worried about their message getting carried away from them. You can set up your account and let it go on its own – developing and doing more without you having to worry about that.
But what if your ad copy is important to you. You want more control over your advertising message, over your brand.
What if you’re in an industry that’s heavily regulated – healthcare, financial services, etc. Could these ad copy changes get you in trouble?
These are real concerns that people have right now.
There is some relief for people with concerns – AdWords Ad Suggestions are still in Beta and can be opted out. For those that do not want ad suggestions, follow these steps:
For people with standard AdWords accounts:
- Choose Settings in the page menu.
- Select Account settings.
- Choose Don’t automatically apply ad suggestions.
Ad Suggestions are just now launching. I first heard from our Google Rep in a direct phone call to alert us to the change! Keep a look out for these, they’ll be giving ad suggestions at most once every 7 days and they’ll automatically go live after 14 days of the suggestion.
Read more about Ad Suggestions (https://support.google.com/adwords/answer/7498488?hl=en)
Change is constant at Google
One thing is certain in Google’s Organic and Paid Search – change is constant. Search results are constantly updating, AdWords interface is changing, and more. There’s hardly a month that goes by the Google doesn’t send some ripples around the advertising community with their changes.
How will your business be impacted? These are significant changes and you won’t want to get blind-sided by them. Knowing allows you to plan. Comment sections allow you to vent – tell us your thoughts!