How would you recommend that William set his budget if he wants to spend US $608 per month on his campaign? OR An advertiser has decided that they want to spend $608 per month for their campaign. How would you recommend they set their budget in their AdWords account?
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 wrong?
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.
Official documentation: https://support.google.com/google-ads/answer/2375417
Topics in this question
About the Google AdWords Fundamentals Exam (Retired)
The AdWords Fundamentals exam was retired when AdWords became Google Ads.
Exam guide and all 140 AdWords Fundamentals (Legacy) questions →Related AdWords Fundamentals (Legacy) questions
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