Google introduces new budget allocation options for ad campaigns

Advertisers setting up new digital ad campaigns on the Google platforms now have the option to choose a ‘campaign total budget,’ a feature designed for those with a fixed spend over a defined period.

With a campaign total budget, advertisers decide the full amount they want to spend for the entire campaign at the time of creation. Once selected, the budget type cannot be changed. The system then adjusts daily spending based on how much has already been spent and how many days remain, with no daily spending cap. Advertisers will not be charged more than the total amount set.

This differs from average daily budgets, which allow more flexibility. Under that model, spending is capped on a daily and monthly basis, typically up to twice the average daily budget on a given day and about 30.4 times the daily budget in a month.

Campaign total budgets are available only for new campaigns and cannot be applied to existing ones, Google noted in a blog post. The minimum campaign duration is three days. For most campaign types, the maximum duration is 90 days, though Demand Gen and YouTube campaigns can run for up to a year.

The option is supported across multiple bid strategies and campaign types, including Search, Performance Max, Shopping, Demand Gen and YouTube, with eligibility depending on the specific format and bidding approach.

The Google guidance advises advertisers to avoid frequent changes once a campaign is live, as edits such as altering end dates or budgets can disrupt optimisation and lead to uneven spending. It also notes that campaigns limited by strict targets may not fully spend their budgets, recommending adjustments to bidding strategies or targets to improve delivery.

Advertisers are also encouraged to reduce overlap between campaigns and ensure promotions are applied consistently across relevant product feeds to improve performance.