How is Actual Spend calculated in Optimize Budget?

Actual spend in Optimize Budget is calculated by aggregating the spend for all active budgets (shared and individual) in the account. By default only active budgets are included in the calculation, to include inactive/paused budgets, you can select the “Show Paused” option.

Why do I see a difference between the Actual Spend in Optimize Budget tool and Google Ads cost for the same date range?

By default, the tool shows the total spend for active budgets in your account. If you have some budgets which were removed during the given date range, they will not be a part of the actual spend. In Google Ads, the cost includes spend for both active and inactive/paused budgets for that period which is why you may notice a discrepancy. To include information on these budgets, you can select the “Show Paused” option in the campaign selector on the left side and it will show the total spend, similar to Google Ads.

Why is the system projecting a decrease in conversions when giving optimization suggestions to increase clicks?

When generating optimization suggestions, the system reallocates the budget across campaigns to help achieve the selected goal. If we specify that our goal is to increase clicks, the system will allocate more budget to campaigns that have a higher click through rate to capture the opportunity to increase clicks. This may lead to a decrease in the budget of campaigns that have a lower CTR but a higher conversion rate, which could cause a drop in conversions in these campaigns.

If the campaigns with the best CTR have a low conversion rate, even the increase in clicks may not generate a significant improvement in the conversion rate hence the amount of conversions projected for these campaigns may not compensate the loss of conversions the system is projecting on campaigns for which the budget was reduced.

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