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Google Ads introduces monthly paid limits

Google Ads introduces Monthly Paid Limits


As a brand, there’s no denying the power of capitalizing on the significant number of searches that take place on Google daily. If you want a winning digital strategy that converts, running Google Ads will most likely be an integral part. However, as with all types of advertising, it comes at a cost. And until very recently, it was much harder to control your Google Ads budget, with the possibility to overspend.

The team at Google has finally introduced a new feature that fixes this issue: cue the Monthly Paid Limits in Google Ads!

What are Monthly Paid Limits?

Monthly Paid Limits is an optional feature that allows you to set a monthly budget so you don’t overspend on your Google Ads. Once you’ve reached that limit, your ads will automatically be paused.

For years prior, it was much harder to stick to a budget whilst running Google Ads. The budget was set as a daily spending limit, equating to the maximum amount that you can be billed for a campaign on a given day. However, there was the possibility for your campaign to spend up to twice that amount to maximize the fluctuations of traffic.

With the monthly paid limits in Google Ads, it is now much easier to control your spending on the platform and clearly define your marketing budget overall.

The advantages and limits of this new feature

If you’re running multiple campaigns and you want to stick to a strict budget, then this new feature will be extremely helpful.

When you are running more than one campaign, it can be challenging to determine where you are spending too much. But when you set a monthly ad spend, you won’t have to control it anymore as you’ll have that extra safety measure.

However, you need to keep in mind that as the monthly spend limit is set at the account level, it will stop your ads from running if you’ve reached your limit. You, therefore, run the risk of having your campaigns not showing ads mid-month. That’s why you need to optimize and assess the performance of your campaigns regularly and update your Monthly Spend Limits accordingly.

How to set it up Monthly Paid Limits in Google Ads

Before setting up Monthly Paid Limits, you need to determine what your monthly budget is. To do this, you multiply the average daily budget you set by the average number of days in a month, which is 30.4.

Once you’ve done this, all you need to do is follow the below steps:

  1. Sign in to Google Ads and go to the ‘Billing’ tab in the right-hand side of the toolbar
  2. Select ‘Settings’ on the menu located to the left
  3. Set your Monthly Spend Limit

It’s that easy! If you want to discuss running Google Ads for your business, get in touch with our specialists today.


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