By: Jyll Saskin Gales, Google Ads Coach

A common question I hear is, "I have a $250 daily budget, but my campaign is spending $370 or more a day. What's going on?" If something like this has happened to you, you're not alone! Many advertisers have questions about how Google Ads budgets work, especially when it comes to daily spending limits. Let's uncover a little-known secret about Google Ads billing that could save you money and give you peace of mind.

Daily Spending Limit vs. Average Daily Budget

In Google Ads, your daily spending limit is twice your average daily budget. So, with a $250 daily budget, your campaign can technically spend up to $500 in a single day. However, you'll never go over your monthly spending limit, which is 30.4 times your average daily budget. With a daily budget of $250, that means your campaign won't spend more than $7600 in a calendar month, even if it blows past your daily budget.

The Overdelivery Safety Net: Served vs Billed Cost

Sometimes, the Google Ads algorithm might get a little overzealous and spend more than your daily spending limit. It happens, and it can be really scary when it does. But don't worry, you won't be charged for those overages. This is known as "overdelivery," and it's a safety net that Google Ads provides to ensure you're not overcharged.

How Overdelivery Works in Google Ads

Let's say your campaign is doing really well one day, and so Google Ads lets it spend $550 - even though your daily budget is $250 and your daily spending limit is $500. This is actually a good thing! You'll still get to keep the clicks and conversions, but you'll only be billed for $500, which is your daily spending limit. Your billed cost is always capped at your daily spending limit, regardless of how much the algorithm actually spends. Basically, you just got free money. Congrats!

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