If you want your ads to run, you must set a budget first. Only then you can start serving ads to your audience. With Google Ads, you have two options regarding your budget – average daily budget or shared budget. Let’s talk about the shared budget this time, why you should use it and why you should avoid it.
How does shared budget work
If you want to save time or can’t decide how to distribute budgets across your campaigns, you can use a shared budget. It divides the money automatically across the chosen campaigns by you. The main goal is to help you improve ROI.
To give you an example, if you have two campaigns sharing one budget of 60€/day and one campaign spends 20€, 10€ will be transferred to the other campaign so it can spend 40€ instead of 30€.
How to create shared budgets
You need to be logged in to your Google Ads account first. Then, click on the Tools icon on the upper menu and under the Shared library are Shared budgets. You can create several shared budgets and add campaigns according to your taste and liking.
You are not done just yet. You also have to enable it in individual campaigns. You have to go to campaign settings, open the “Daily budget” and click on Apply from Shared library.
You can also easily remove any Shared budgets if you don’t want to use them anymore. But first, you have to remove them from campaigns. Otherwise, you can’t delete Shared budgets from the Shared library.
The advantages of a shared budget
As we mentioned at the beginning of this article, the main advantage is to save you some time. This applies especially when you have a lot of campaigns and not enough time. This way, Google does the heavy lifting for you and you don’t have to worry about budgets.
And thanks to the possibility of creating multiple Shared budgets, you can divide your campaign into groups with similar properties. This way, your best performing, mediocre performing and low performing campaigns can have their very own Shared budget for the best possible results.
The disadvantages of shared budgets
From now on, we will talk about why you should not use a Shared budget and why it will do more harm than good. There are se21eral reasons:
you have almost no control - because the budget is automatically divided by Google, you have very little to say in this. Finances go into campaigns that spend too much and have very little performance
you grouped your campaigns wrong - you mixed together campaigns that have different performance and this results in uneven budget sharing.
you optimize budgets, not bids - for the best result, you should always change the bid, not the budget. But some of the advertisers forget about this and when there is a limited budget error, they rush to change the budget, obviously. But that’s not the right way to do it. With the right bidding optimization, you can do wonders in your account
you can become lazy - we know, it is better sometimes to get some help and to rely on someone or something else rather than yourself. But don’t get too lazy! As mentioned before, you may end up losing important information about your account and in the end losing much money as well.
So in conclusion, you should always pick a daily budget for each campaign individually over a shared budget. There are only a few examples and situations where you should consider a shared budget.
Book a quick
20 minute call
Want to learn more about automating product campaigns? Schedule a 1-to-1 call with one of our account managers.SCHEDULE A DEMO