Daily budget is a marketing term that is used in regards to Pay Per Click campaigns and refers to an average maximum amount of money that can be spent on a particular advertising campaign on a given day. The settings of a campaign are configured to stop any campaign promotion when the limit is reached.
Setting a daily budget doesn’t mean that the exact amount of money will be spent on a campaign every single day as it’s a variable cost that depends on the performance of a campaign and the bidding strategy. However, if a daily budget is exceeded by 10% on any given day, the exceeded amount will be compensated by the other day when the cost would fall below the daily budget.
A daily budget helps marketers effectively manage their resources through the life of a campaign or during the testing stage. If the daily budget was set only for the period of campaign testing, it’s usually being scaled once the campaign has proven to be effective.
