Microsoft Advertising budget tools allow you to control your advertising spend and use features that make payments flexible and easy. This training will explain available budgeting and billing, show you how to maximize budgets, and set up a daily campaign budget. It will also review payment methods, issues with customer credit, and new account management systems.
After reading this training, you will understand how to:
- Set up a Shared Budget and select from daily budget options.
- Identify and fix errors that prevent accounts from serving ads.
- Link prepay billing methods and become the bill-to party.
- Optimize allocated budgets and identify credit holds and limits.
Microsoft Advertising Budget basics
Your campaign budget is the total amount covering expenses across your campaign’s ad groups. Microsoft Advertising allows you to budget on a daily basis and lets you control how quickly your budget is spent. There are ways to modify variations of daily budgeting.
The Microsoft Advertising Shared Budgets feature lets you spend between campaigns using the same account. Either apply a single Shared Budget across all your campaigns, or select specific campaigns for distribution. With a Shared Budget, Microsoft Advertising automatically adjusts how your budget is spent across its campaigns to help you improve your ROI.
LLet's say you want to spend $40 per day on Campaign A and $40 per day on Campaign B. One day, Campaign A gets fewer clicks than usual, and only spends $30. Meanwhile, demand for ads from Campaign B is higher than usual. With individual budgets, Campaign B could run out of funds, leaving potential clicks on the table. But with a Shared Budget, Microsoft Advertising reallocates the $10 Campaign A didn't need to Campaign B, letting it capitalize on the additional demand.
You can always go back to using individual budgets for complete control over how much you spend on each campaign.
To set up a Shared Budget, click Shared Library in the left navigation pane. Click View Budgets. Click Create budget
Give your Shared Budget a unique name and set a budget amount. Keep in mind that this amount needs to be large enough to cover all of the campaigns to which the Shared Budget is applied. Select the campaigns you want to use this Shared Budget. Click Save
Note: Once you have set up at least one Microsoft Advertising Shared Budget, when you create a new campaign, you will have the option to choose a Shared Budget for it to use.
How to estimate a campaign budget
A good formula to keep in mind is this one: Budget = Clicks x Bids. When you’re limited by budget, you can use the budget suggestion tool and keep in mind that increasing your budget, decreasing bids, increasing your Quality Score, and pausing keywords will all help.
Remember to always automate your bids for better strategy. You can use Maximize Clicks to get as many clicks as possible, and Maximize Conversions to get as many conversions as possible.
Choose an appropriate budget option
Before you can submit your ad campaign, you need to set up your campaign’s budget and keyword bids. You also need to select a budget type. Don't worry, you can change your budget amount and budget types at any time. Changes to your budget generally take effect within an hour or so.
There are four budget types to choose from:
Set a Daily – Standard if displaying your ads throughout the entire day is important and you are willing to monitor your budget daily so you can make adjustments if necessary.
Set a Daily – Accelerated if you want to maximize impressions but are also are willing to monitor your budget daily so you can make adjustments if necessary.
Set a Shared – Standard if displaying your ads across multiple campaigns throughout the entire day is important and you are willing to monitor your budget daily so you can make adjustments if necessary.
Set a Shared – Accelerated if you want to maximize impressions across multiple campaigns but are also are willing to monitor your budget daily so you can make adjustments if necessary.
Setting a daily budget
When initially creating a campaign, start with either the Daily – Standard or the Shared – Standard budget type.
To choose the Daily budget option, select Daily from the drop-down menu next to the Campaign budget box. In the Campaign budget box, enter your daily amount. When you set a daily budget, the Microsoft Advertising system multiplies the daily amount by the number of days in the current month and automatically calculates the maximum monthly budget. Expand Daily budget options to select how you want the budget spent, Standard or Accelerated.
To change your budget type later on, simply click Campaigns located at the top of the page. Click the name of the campaign you want to update. Click the Settings tab. Select the appropriate budget type, enter an appropriate amount, and click Save.
To manage budget issues, access the Microsoft Advertising Budget Suggestions tool from the opportunities tab. For each campaign with a depleted, or nearly depleted budget, Microsoft Advertising provides a recommended budget, along with an estimated increase in clicks.
Using this tool, it’s easy to make adjustments to budget recommendations, and apply the new budgets to your campaigns.
When an account has an error, the ads in that account do not run. With Microsoft Advertising account alerts, status alerts consolidate in one place, with links to help you resolve any issues. Simply visit the Accounts Summary and Account Details pages. You can filter for specific errors and export errors from Microsoft Advertising online. A dropdown displays the different types of errors can be filtered. Account errors automatically dismiss when resolved.
If you manage more than one Microsoft Advertising account, you can get the big picture from the Accounts Summary page.
Microsoft Advertising billing is flexible, giving you the choice between pre- and postpay options, as well as multiple payment methods. You can also spend time getting familiar with your Microsoft Advertising account and the Microsoft Advertising interface prior to setting up payment information. When ready, enable your account for live activity by establishing a billing method. Remember, with Microsoft Advertising search engine advertising, there are never charges until someone clicks your ad.
To set up billing for the first time, click Accounts & Billing. Click the Payment Methods tab. Click Add card or another payment method of your choice.
Select the country of your billing address, and then select from a range of -Microsoft Advertising billing options, including how you pay (payment setting) and what you pay with (payment method)
Enter the required information based on the payment method you select.
Prepay and postpay options
Microsoft Advertising is a pay-per-click (PPC) advertising service, which means we charge you each time your ad is clicked. There are two main ways to pay for those charges: prepay and postpay.
On the Payment Methods tab, you have different options depending on whether you have one or multiple accounts (see below).
Postpay threshold vs. prepay: What's the difference?
The big difference between a postpay threshold account and a prepay account is whether you pay after charges have accrued or before, but there are a few other smaller differences described below.
Monthly invoice billing is also an option.
Your Microsoft Advertising billing threshold is the charge against your primary payment method when you reach your billing threshold or your monthly billing date, whichever comes first.
Say in your first 30-day period, your charges are well below your billing threshold of $50. Your primary payment method is thus charged on your monthly billing date. In the next 30-day period, you hit your billing threshold a few days before your monthly billing date. In this instance, your primary payment method is charged at that time.
You can set a limit on the amount Microsoft Advertising can charge your payment method. For example, if your billing threshold is $2,500, but you don't want charges to your credit card that are greater than $2,000, you can set a limit.
You can find your billing threshold by clicking Accounts & Billing. Click the Billing tab.
If you have more than one account, click the account number for the account you want to set the limit on. At the top of the page, in the box titled When you pay, the amount shown is the current billing threshold applied to your account.
To set a billing threshold limit, click set a limit in the When you pay summary at the top of the page. Select Limit each charge to and enter the payment amount you do not want to exceed.
Where can I find my billing threshold?
Click the gear icon , and then click Accounts & Billing. Click the Billing tab. If you have more than one account, click the account number for the account you want to set the limit on.
At the top of the page, in the box titled When you pay, the amount shown is the current billing threshold applied to your account.
How do I set a limit?
Click the gear icon , and then click Accounts & Billing. Click the Billing tab. If you have more than one account, click the account number for the account you want to set the limit on.
In the When you pay summary at the top of the page, click set a limit. Select Limit each charge to and enter the payment amount you do not want to exceed.
Learn more about how to pay for Microsoft Advertising.
Download or print a statement
You can download and print your billing information at any time from the Billing tab, including payments you've made (billing statements), bills you've received (invoices), and credit or debit adjustments.
Note: Statements and invoices are always based on Pacific Time.
Click the gear icon , and then click Accounts & Billing. Click the Billing tab.
Select one or more documents in the table, and click Download documents. (If you don't see any documents in the table, then you will need to select a different date range in the drop-down list to show past documents.)
Open or save the zip file to your computer. After you download the PDF documents, you can print them from your computer.
With consolidated billing, similar invoices will be combined into a single invoice, making it faster and simpler for you to review your billing across your accounts. The billing details for each of your accounts are always available in Microsoft Advertising on the Billing tab.
Some things to know:
- Consolidated billing is only an option for customers who receive monthly invoices.
- Monthly invoices eligible for consolidation must share the same characteristics, such as the same Microsoft Advertising Customer ID, currency, language, and SAP ID.
- Only users with Super Admin permissions can sign up for consolidated billing.
- You can't select specific accounts for consolidated billing. Consolidated billing applies to all of your accounts or none of them.
To turn on consolidated billing, click the gear icon , and then click Settings. Click Billing settings in the left pane. (If it's closed, you can open the pane by clicking the arrow.)
Next to Consolidated billing, click Combine similar bills into a single monthly invoice. Click Save when you're done.
Billing alerts via email
Sign up to receive billing alerts for when your billing documents are ready or when there's an issue with your payment. The types of emails you receive depend on how you pay for Microsoft Advertising.
- For prepay accounts, you'll receive an end-of-month email that links you the summary of your prepayments for the month.
- For postpay threshold accounts, you'll receive an end-of-month email that links you to the Billing tab, where you can see all the payments you made once you reached your monthly billing date or your payment threshold, whichever came first. Learn more about billing threshold.
- For monthly invoice billing, you'll receive an email that links you to the Billing tab, where you can see your invoice.
Note: If you're a Super Admin, you can set email preferences for other users. Learn more about user roles.
Monthly invoices via email
If you have a monthly invoice account, your invoices will arrive via email to your accounts payable contacts on file. A Super Admin can designate anyone to be an accounts payable contact — including those without a Microsoft Advertising account. Go to Billing settings to update a contact's information.
Click the gear icon , and then click Settings. Click Billing settings in the left pane. (If it's closed, you can open the pane by clicking the arrow.)
Find the SAP ID you wish to edit. (If its details are hidden, you can reveal them by clicking the arrow.)
Click Add accounts payable contact to add a person's email address, first name, last name, and phone number (with country/region code). Click Save when you're done.
Any changes you make will take effect in the next billing cycle. By the 2nd business day of the month, your accounts payable contacts will receive your invoice by email.
As a monthly invoice customer, you can control several aspects of your billing documents, from how they're created to how they're distributed. First, you can enable two global settings that apply to all invoices. Then, you can specify additional settings for invoices grouped by SAP ID, the unique customer billing number that is assigned to you when you set up monthly invoice billing.
- Consolidated billing. If you have multiple monthly invoice accounts, you can combine invoices that share the same Microsoft Advertising Customer ID, currency, language, and SAP ID. You'll get a single invoice with a high-level, account-by-account breakdown of costs rather than a separate invoice for each account. (All billing details will remain accessible in Microsoft Advertising.) At this time, you only have the options to consolidate all monthly invoice bills or none.
- Campaign details. You receive a breakdown of costs per campaign with your monthly invoice.
Learn more about all the options for monthly billing, like how to opt or out of paperless, add an attention line to an invoice, manage accounts payable contacts, and more.
Managing insertion orders
You can create and manage your IO’s online, or call your Microsoft Advertising account manager to have them do it for you.
You can create an insertion order following these easy steps:
From the Accounts & Billing tab, click the insertion orders tab. Click on Create Order. The required fields are the Start date, End date, and Budget. When finished, click Accept.
You’ll notice Pending Microsoft Advertising review in the Status column. Once the Microsoft Advertising team has reviewed the IO, the status will be updated to active, and your ads will run on the ordered start date.
If your account manager creates the IO, you will get an email asking you to review the order. On the insertion orders page, click Review pending orders. You can then choose to accept or decline the order. If you need to cancel an order for any reason, such as budget or scheduling changes, just select it and click Cancel order.
Managing your payment method
You can add, remove or change the payment method on your account at any time. (Note: You cannot change between prepay and postpay options.)
Go to the Accounts & Billing page and choose the payment methods tab. To change to an existing payment method, click the Set button. Click the Add option of your choice. Click the Edit button to edit a selection. Click the Delete button to remove a payment option. Click the Add funds link to draw money from the payment method (if you are using pre-pay accounts).
Invoice mailing address
The Microsoft Advertising mailing address field ensures that invoices are not sent to the wrong address. You get to choose where to receive your billing information for your multiple accounts.
You can receive monthly invoices at a separate specific mailing address, and even receive your billing information internationally, including a country that is different from your business address.
If you have a single account, you can add or edit your business location and, if required, tax information*, on the Accounts tab.
To add the mailing address, select the Billing tab under the Accounts & billing section. Click on the Settings button from the billing view. In the Microsoft Advertising Billing Settings section, select the Bill-to customer for which you want to add/edit the mailing address. Make the changes to the Invoice mailing address field. Click Save.
To edit the business location and, if required, tax information for multiple accounts, select the accounts you want to edit, and click Edit Taxes.
Your new billing documents will reflect Microsoft Ireland Operations Ltd. as the new billing entity.
Note: Invoices will be sent to legal addresses as usual, if you do not provide new, separate mailing addresses.
Read more about how to pay for your Microsoft Advertising.
Choosing your account currency
Each time you create a Microsoft Advertising account, you need to select the currency you will use to pay your advertising costs.
If you run multiple advertising campaigns and need to pay in different currencies, you just need to set up one account per currency.
You can pay for Microsoft Advertising using one of nine currencies available globally, excluding Brazil and India. There may be a few more currencies available for use in your country/region.
- Danish krone (DKK)
- Euro (EUR)
- Hong Kong dollar (HKD)
- Mexican peso (MXN)
- Norwegian krone (NOK)
- Swedish krona (SEK)
- Swiss franc (CHF)
- UK pound (GBP)
- US dollar (USD)
The table lists all of the different payment methods available in Microsoft Advertising. The green check mark indicates which payment methods are valid based on your country/region, currency, and the payment setting (postpay threshold, prepay, or monthly invoice).
Learn more about forms of payment and currency.
Review your billing statements
You can review your Microsoft Advertising billing statements at any time in several ways:
- Click Accounts & Billing and select the account. Look for the “Statements” in the right column to immediately find recent statements.
- Click the Billing tab to see more detail and statements.
Paying for Microsoft Advertising is made simple with step-by-step information on the Payments and Billing tabs.
Remember these key points when considering your budgeting and billing options:
- Choose a budgeting option that suits your campaign.
- Find your billing threshold and create limits on spending.
- Select between prepay, postpay and monthly invoice options.
Thanks for reading this Study guide on Microsoft Advertising budgeting and billing. Continue studying or take the Microsoft Advertising Certified Professional exam to become certified.