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Your AdWords account actually has two budgets -- a daily and a monthly budget.
The daily budget sets the maximum amount you wish to spend on your AdWords campaign on any given day.
The monthly budget represents the total amount you wish to spend for an entire month.
While separate, the two budgets do have a direct impact on each other. For example, if you set a monthly maximum but fail to set a daily limit, you risk running through your entire monthly budget in just a few days. So, as you can see, it is vital to have a firm understanding on both your daily and monthly limits.
Advertisers who are new to Google AdWords frequently set their ad budgets too low, usually because they are fearful of losing a big chunk of change.
If your budget is pretty low, then you probably either have not yet grasped the magnitude of what Google AdWords is capable of doing for your business or you are cautiously playing around with the numbers to see what works best before throwing more money into the budget.
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