Google Update to AdWords Budget Spend: What It Means for ReachLocal Clients

Google recently announced that as of October 4, 2017, it will spend up to twice the daily budget set for an AdWords campaign. This is a change from its previous policy, which allowed spend up to 20% more than the assigned daily budget. ReachLocal commends Google for this change since this is how the ReachLocal platform has worked for many years. So, ReachLocal advertisers need not worry, this change will not impact your campaign.

The ReachLocal platform automatically sets daily budgets higher than the expected daily spend for an advertiser and uses bids rather than daily budget to control spend. Using this spend management approach, ReachLocal is able to consistently deliver low cost per clicks (CPCs) by setting the bids just high enough to deliver high-quality traffic throughout the month.

By allowing more spend than would normally occur on any given day with a fixed daily budget, ReachLocal clients get three key benefits:

  1. Lower CPCs which ultimately result in a lower cost per lead and more leads overall.
  2. Lead volume is not capped during periods of high demand.
  3. Multiple publishers can drive traffic at any time, which means ReachLocal’s multi-publisher platform is free to optimize the campaign and deliver the best quality traffic from different publishers at any given time.

If you’d like to learn more about ReachLocal’s proprietary optimization system, please contact your ReachLocal representative.

Bob Nishiyama

Bob has over 15 years of online marketing experience and helping businesses generate and monetize web traffic through SEO, PPC, display advertising, and social media. He is currently ReachLocal's VP of Search Media, and is responsible for the development of the company's paid search platform, performance of campaigns, and growth of the business.

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