In pay-per-click (PPC) advertising, a shared budget is a tool that allows advertisers to allocate a single daily budget across multiple campaigns within the same account. Instead of setting individual budgets for each campaign, advertisers use a shared budget to distribute funds dynamically, ensuring resources go where they’re most needed. This approach can be especially beneficial when managing multiple campaigns with overlapping goals or limited resources, as it provides a more flexible way to allocate ad spend throughout the day.

Shared budgets are commonly used in Google Ads and provide advertisers with an efficient way to manage costs while maximizing reach and performance. By allowing ad budgets to flow to the campaigns with the highest demand, shared budgets help improve cost-effectiveness and make budget management less time-consuming.

This flexible approach to budget management makes shared budgets especially valuable for businesses with variable demand, seasonal peaks, or overlapping campaign goals.

Key Benefits of Using a Shared Budget

Setting up a shared budget offers multiple advantages, especially for accounts with multiple active campaigns or those aiming to simplify budget management:

• Efficient Budget Allocation: Instead of having separate daily budgets for each campaign, shared budgets enable funds to shift toward higher-performing campaigns, helping avoid overspending on low-performing ones.
• Time-Saving Management: A shared budget minimizes the need to frequently adjust budgets manually across individual campaigns, making it easier to manage your PPC strategy.
• Enhanced Flexibility: Campaign performance and ad demands can fluctuate throughout the day and seasons. A shared budget allows for more fluid adjustments, automatically distributing funds where they’re most effective based on real-time performance.
• Better Alignment with Goals: Shared budgets are especially useful for campaigns with similar goals, such as increasing brand awareness across multiple products. They ensure each campaign gets the necessary funds to achieve shared objectives.

Shared Budget Disadvantages

While shared budgets offer many advantages, they may not always be the ideal choice for every PPC strategy. Here’s a quick look at its cons:

• Less Control Over Specific Campaigns: Shared budgets can make it harder to prioritize individual campaigns. If one campaign regularly performs better, it may take more of the budget, which could limit lower-performing campaigns’ reach.
• Not Ideal for Unique Campaign Goals: Campaigns with distinct objectives may be better off with separate budgets to ensure each has the necessary resources to meet its goals.

How to Set Up a Shared Budget in Google Ads

Setting up a shared budget in Google Ads is simple. Follow these steps:

1. Log into Google Ads: Access your Google Ads account and navigate to the “Tools & Settings” menu at the top of the page.
2. Navigate to Shared Library: Under the “Shared Library” section, select “Shared Budgets.”
3. Create a New Shared Budget: Click on “+ Budget” to create a new shared budget. Name the budget and set the daily amount you want to allocate across campaigns.
4. Select Campaigns: Choose which campaigns will share the budget. Ensure they align in terms of goals to make the most of the shared budget approach.
5. Save and Apply: Once campaigns are selected, save the settings. Google Ads will now distribute the shared budget dynamically across the chosen campaigns based on demand and performance.

Best Practices for Using Shared Budgets

Using shared budgets requires a thoughtful approach to ensure campaigns perform optimally. Here are some best practices:

• Choose Similar Campaigns: Apply shared budgets to campaigns that target similar audiences, regions, or goals. For example, campaigns promoting products within the same category may be a good match for a shared budget.
• Monitor Performance Regularly: Keep an eye on individual campaign performance to ensure the shared budget is being well allocated. While shared budgets save time, periodic reviews are essential to keep the best budget allocation.
• Adjust Budget Amounts Based on Data: Start with a conservative shared budget and adjust over time based on actual performance data. If certain campaigns consistently outperform others, consider tweaking the shared budget to favor high-performing campaigns.
• Align with Overall PPC Goals: Ensure your shared budget strategy aligns with your broader PPC goals. If specific campaigns need higher budget priority, a dedicated budget might be better than a shared approach.
• Set Up Alerts: Google Ads allows for custom alerts. Set up notifications to track daily spend and flag any budget usage anomalies. This helps catch unexpected changes or performance drops.

Examples of Shared Budget Use Cases

Shared budgets are particularly useful in a few common PPC scenarios. Here are examples to illustrate when shared budgets can work best:

• Seasonal Campaigns: During peak shopping seasons, a retail brand might run multiple holiday-focused campaigns targeting different product categories. With a shared budget, funds automatically flow toward the campaigns receiving the most traffic or conversions, optimizing ad spend throughout the season.
• Regional Campaigns with Overlapping Targets: A restaurant chain may have campaigns targeting different locations within the same city. A shared budget lets funds adjust based on which regions see higher demand, so budget allocation aligns with real-time interest.
• New Product Launch Across Multiple Campaigns: When launching a new product, a tech company may run separate campaigns targeting brand awareness, direct purchases, and social proof. With a shared budget, each campaign benefits from the same pool of funds, adjusting automatically based on demand.

‍