Budget basics

Learn the basics about budgets, budget options, and budget performance estimates in Microsoft Advertising.

When you create a campaign, you also set a budget, which is the amount you're willing to spend on the campaign. But what amount is right for you?

Choosing a campaign budget

With Microsoft Advertising, you only pay when someone clicks on one of your ads, so a good starting point is to think about your campaign budget in terms of clicks and cost per click (CPC). In other words, how many clicks are you hoping to get each day, and how much is each click worth to you?

Let's say that you want the ads in your campaign to get 50 clicks a day, and you decide that each is worth a maximum CPC of $.40. Multiply $.40 by 50, and a budget of $20 per day seems like a good idea. Keep in mind that you can change your budget at any time in your campaign's Settings tab.

Daily budget options

When you set your campaign's budget, you also choose a budget type. There are two basic daily budget types:

Budget type Details
Daily - Standard

Microsoft Advertising will help you spend for optimized performance based on the products or services targeted by your campaign and availability of corresponding user searches during the day.

Choose this budget type if displaying your ads throughout the entire day is important and you are willing to monitor your budget daily so you can make adjustments if necessary.

Note: When you first create a campaign, we recommend starting with this budget type.

Daily - Accelerated

Distributes your ad impressions across the entire month, showing your ads as quickly as appropriate each day until your daily budget is depleted.

Accelerated budgets are not recommended for most advertisers. Consider using this option if you are looking to show your ads early in the morning until your budget depletes, even if that means your ads will not show up for the rest of the day.

  • The accelerated budget type is being deprecated for all ad campaign types except audience campaigns. As of November 1, 2019, all search, shopping, and dynamic search ad campaigns use standard budget delivery regardless of the budget type that you have set. Learn more
  • Your daily budget limit is a target; your actual spend might be higher or lower. Variations are caused by a number of factors, such as different traffic volumes in different days of the week, or automatic detection and refunding of fraud clicks that can give money back to a campaign within a few hours of the click. Microsoft Advertising anticipates and automatically compensates for the fluctuations, and usually keeps overspend to less than 100% above your daily limit.

Performance estimates

When you set your budget while creating a campaign, you'll see estimated performance metrics, based on your keywords and settings:

Estimated monthly clicks

What it is: This is the number of times customers are expected to click your ads every month, given your keywords and your targeting and budget settings.

Why it's important: Clicks are what you pay for. They typically include a customer clicking an ad on a search results page or on a website on the search network. Clicks can also come from other sources, such as spiders, robots, and test servers.

Tip: You pay for clicks on standard-quality clicks, not on low-quality or invalid clicks.

Get more info: Monitoring clicks: Telling the good from the bad

Estimated monthly impressions

What it is: This is the number of times customers are expected to see your ads every month, given your keywords and your targeting and budget settings.

Why it's important: Regardless of whether you are driving customers to your website, tracking conversions, or just trying to get your message out, you'll want to track the number of times your ad is shown.

Estimated monthly spend

What it is: This is the estimated total amount you will spend on this ad group every month, given your keywords and your targeting and budget settings.

Get more info: What if I reach my budget limit?

Estimated average position

What it is: Estimated average position is the location that ads are likely to appear on the search results page. Although it varies, positions 1-4 appear at the top of the search results page and positions 5-10 appear in other locations (for example, the bottom or the sidebar).

Why it's important: Ads that are on the first search results page tend to receive more clicks.

Get more info: Get my ad to the top of the search results page

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