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Google AdWords Fundamentals

How would you recommend that William set his budget if he wants to spend US $608 per month on his campaign

Set a bid of $20 per ad group
Set a daily budget of $20 for the advertiser’s account
Set a bid of $20 for the advertiser’s campaign
Set a daily budget of $20 for the advertiser’s campaign

Correct Answer

Set a daily budget of $20 for the advertiser’s campaign

Why is this the correct answer?

To spend US $608 per month, William should set a daily budget of $20 for his campaign. Google Ads budgets are set at the campaign level on a daily basis, not monthly or per ad group. Dividing $608 by approximately 30.4 days gives $20 per day. Daily budgets control how much can be spent per day on that specific campaign, and Google may spend up to 2x the daily budget on high-traffic days but will not exceed the monthly equivalent over a billing period.

Why are the other options incorrect?

Set a bid of $20 per ad group

Bids are set at the keyword or ad group level and control how much you are willing to pay per click — they do not control total spend. Setting a $20 bid does not limit monthly spend to $608.

Set a daily budget of $20 for the advertiser’s account

Budgets are set at the campaign level, not the account level. An account-level budget would affect all campaigns, not just the one William wants to control.

Set a bid of $20 for the advertiser’s campaign

There is no campaign-level bid setting in Google Ads — bids apply to keywords or ad groups. This answer confuses bidding with budgeting.

Real-World Example

A small bakery wants to spend exactly £300/month on Google Ads. Dividing by 30.4 days, they set a daily campaign budget of £9.87. Google occasionally spends £19 on busy Fridays but stays within the monthly cap, giving the bakery predictable, controlled ad spend.

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