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  • Posted on 20 January 2014

New shared budget option in AdWords

by Laura Marley

Google have recently introduced a shared budget option in the AdWords interface. This feature allows selected campaigns to share one budget rather than having multiple separate maximum budgets.

Advantages and Disadvantages:

  • Most of the overall budget will be diverted to the most successful campaigns, allowing the top performers to continue performing stronger for longer
  • There is no need to reallocate budgets as the top performers will get the lion’s share
  • If your goal is to build brand awareness, shared budget is a good option because it allocates your money to several different campaigns. The probability of generating a high number of clicks will increase, since in any given day it will be likely that at least one of your campaigns will be performing well
  • You won’t have to monitor your budgets as closely, because any underspending campaigns included in a shared budget will see their spend automatically pushed to the campaigns that hit their caps sooner

However, Google shared budget will deplete your daily budget allowance without taking ROI and conversions into consideration

So who should use shared budgets?

If your campaigns are limited by budget, there are more viable options and this new setting may not be for you, but those who are trying to increase brand awareness could see an increase in performance when using shared budgets. Any accounts that have erratic campaigns where spend is unpredictable could use shared budgets to maintain a more stable level of performance.

How to get going with Shared Budget Adwords

Go to the ‘Campaign’ tab > Go to the left and click on ‘Shared Library’ and then ‘Budgets’ > Click on the ‘+New Budget’ button > Name your shared budget > Select the campaigns you want to participate > Enter the total budget you want to use on these selected campaigns.

It is a good idea to group campaigns with similar performance into a shared budget, for example: a group based on geo-targeting.

Be advised that delivery settings are applied at budget level and will override individual campaign settings. The outcome of this is that you will be automatically opted into ‘standard ad delivery’ and Google will recommend keeping this setting in order to avoid missing traffic in the later stages of the day. This becomes an issue when you consider that unless your traffic is typically spread evenly throughout the day, your campaigns may not receive the budget they need to achieve the most clicks during peak times. In order to avoid this, make sure you select ‘accelerated delivery’. Although this may result in campaigns being limited by budget, it will provide the best exposure for your marketing activity.

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