Overdelivery credit

In digital advertising, an overdelivery credit is a compensation or adjustment an advertising platform provides when an ad campaign exceeds the advertiser’s budget. Overdelivery occurs when an ad is shown more often than the budget allows, leading to additional charges. To manage this, advertising platforms like Google Ads have policies to credit back the amount that exceeds the daily budget allocation.

For instance, if an advertiser sets a daily budget for a campaign, the ad platform may overdeliver ads on certain days due to varying traffic and bidding dynamics. However, throughout the billing period (such as a month), the platform ensures that the total cost does not exceed the set budget (daily budget times the number of days in the month). The excess amount is credited to the advertiser’s account if it does. This practice helps maintain trust and fairness, ensuring advertisers do not pay more than their intended budget over a defined period, despite occasional overdelivery.