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Monthly spending limit
from Google Ads
Metrics type
Cost
Units of measure
Money
Direction
Less - better
Check frequency
Monthly
Description
The monthly spending limit is the maximum amount you can pay for a campaign over a month.
You can calculate it by multiplying the average daily budget you set by the average number of days in a month, which is 30.4 (365 days in a year divided by 12 months). If your campaign starts during a calendar month, we'll only take into account the days the campaign was running.
You can calculate it by multiplying the average daily budget you set by the average number of days in a month, which is 30.4 (365 days in a year divided by 12 months). If your campaign starts during a calendar month, we'll only take into account the days the campaign was running.
Why it is important
This metric helps control and manage advertising budgets effectively, ensuring that expenditures align with overall financial goals.
By monitoring the Monthly spending limit, advertisers can make informed decisions about budget allocation, optimize campaign performance, and prevent unexpected overages, contributing to a more controlled and strategic approach to advertising spend.
By monitoring the Monthly spending limit, advertisers can make informed decisions about budget allocation, optimize campaign performance, and prevent unexpected overages, contributing to a more controlled and strategic approach to advertising spend.
Formula
Average daily budget you set * Average number of days in a month (30.4)
Calculation example
For instance, if your average daily budget is set to $10 USD, your monthly spending limit is going to be $10 USD * 30.4 = $304 USD.
Affected metrics
n/a
Affecting metrics
Average daily budget
Connecting metrics
n/a
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Suggested slices for dashboards
by Campaign Duration
by Seasonal or Event-Based
by Ad Group
by Seasonal or Event-Based
by Ad Group
The revenue impact pathway
Available in JetMetrics Lite only
Questions to be Answered
1. What is the effect of the Monthly Spending Limit on the e-commerce company's budget allocation strategy for advertising campaigns?
2. Is it possible to identify trends or patterns in campaign performance by analyzing Monthly Spending Limits, particularly in relation to seasonality or marketing initiatives?
3. What is the relationship between the Monthly Spending Limit and the success of campaigns, such as conversion rates, click-through rates, or return on ad spend (ROAS)?
4. How does changing the Monthly Spending Limit affect the distribution of ad spend across different campaigns or ad groups, and are there ways to optimize budget allocation?
5. Can historical data on Monthly Spending Limits provide information about the cost-effectiveness of different advertising channels or platforms, helping to identify the most efficient channels for the e-commerce company?
6. Are there differences in Monthly Spending Limits based on the type of products or services offered, and how can budget adjustments be tailored to different product categories?
7. How does the Monthly Spending Limit fit into the company's overall marketing strategy, and are there opportunities to align budgeting with specific marketing objectives or promotions?
2. Is it possible to identify trends or patterns in campaign performance by analyzing Monthly Spending Limits, particularly in relation to seasonality or marketing initiatives?
3. What is the relationship between the Monthly Spending Limit and the success of campaigns, such as conversion rates, click-through rates, or return on ad spend (ROAS)?
4. How does changing the Monthly Spending Limit affect the distribution of ad spend across different campaigns or ad groups, and are there ways to optimize budget allocation?
5. Can historical data on Monthly Spending Limits provide information about the cost-effectiveness of different advertising channels or platforms, helping to identify the most efficient channels for the e-commerce company?
6. Are there differences in Monthly Spending Limits based on the type of products or services offered, and how can budget adjustments be tailored to different product categories?
7. How does the Monthly Spending Limit fit into the company's overall marketing strategy, and are there opportunities to align budgeting with specific marketing objectives or promotions?
Possible causes of worsening
n/a
Tactics to improve this metric
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