How does billing work
There are Google fees for your Ad spend (via a bank card) and SpotOn fees for management and setup fees (via a debit order).
Google Fees
Based on your monthly budget (ex VAT) we set a daily budget on your campaigns. Google takes that daily budget and multiplies it by 30.4 to calculate the monthly budget. Eg. R100 per day x 30.4 = ±R3,000 per month.
It is important to note that Google has a policy that allows them to spend up to 2x the daily budget if the previous day(s) daily budget was not fully spent. Yip, to Google “daily” does not actually mean daily. This is to ensure your full monthly budget gets spent. Eg. If the daily budget is R100 and for 3 days your account does not get a single click, then Google may spend R200 per day for the following 3 days. We usually also see a spike in conversions on those days as more people are reached.
Currently, you can only pay Google via a bank card. On automatic payments, Google gives you a credit threshold, eg. R500, and once that threshold OR 30 days is reached then your bank card gets charged.
In the below image, with Scenario A, a payment is triggered after 30 days but only half of the credit threshold was spent. With Scenario B, a payment is triggered after 22 days because the credit threshold was fully spent. Therefore, if you have a monthly budget of R15,000 and a credit threshold of R5,000 the bank card will be charged around 3x a month.
NB Over a month, Google won’t charge for more than the daily budget x 30.4. Also keep in mind, your Google Ads budget is easily changeable and scalable depending on your marketing objectives.
SpotOn Fees
Enquire with us for our latest pricing. The first debit order goes off on the day we start with the conversion tracking setup or when the ads go live. Thereafter, the debit order goes off on the 27th of every month.
For example:
Let’s say on 5 Aug your Google Ads go live and we’ve setup conversion tracking.
The first debit order (goes off on 6 or 7 Aug) includes:
-
- Conversion tracking setup fee
- Account setup fee (if once-off option was chosen)
- Pro-rata monthly management fee (5 Aug to 26 Aug)
The second debit order (goes off on 27 Aug and then every month on the 27th, or the nearest business day, thereafter) includes:
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- Account setup fee (if the monthly option was chosen)
- Monthly management fee (can vary depending Google Ads spend and budget)
