On October 4, Google announced suddenly that it will be spending up to as much as twice the advertising budget for campaigns. Google stated this as its reasoning behind the big change:
On days with lots of high quality traffic, your costs could be up to 2 times your daily budget. This spending is balanced by days when your spend is below your daily budget.
Google went on to state that advertisers will not be charged more than their monthly limit (30.4 x average daily budget). Any potential overages will be credited back to the advertisers’ accounts as overdelivery credits.
To be clear, this is not a brand-new tactic from Google. Previously, however, it would only spend up to 20% more than the allotted daily budget.
Search Engine Land created a thorough breakdown of what this change means for advertisers, the scenarios in which it may occur, and how it may impact optimization. Read the article for greater insight.