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How Daily Budget Recommendations are calculated

Updated over a week ago

Overview

Adpulse makes it easy to reallocate your daily budgets across your campaigns and ad sets, based on performance. But how exactly are those recommendations calculated? Here's a breakdown of how it works, explained in plain language.

We are working on being able to automate applying these recommendations on a schedule, currently it's a manual process to apply


1. We Use Your Most Recent Conversion Data

Instead of relying on a fixed date range, Adpulse ranks campaigns based on the CPA or ROAS of the last 10 conversions. This helps us base recommendations on meaningful, up-to-date performance.

For example, each day, we scan the last 7 days' conversion data for each campaign

  • If there have been 10 or more conversions in that week, we use that 7-day CPA/ROAS.

  • If the campaign does not have 10 conversions in the last week, we keep looking back (up to 12 weeks), one week at a time, until we find 10 conversions.

  • If a campaign hasn't reached 10 conversions in the last 12 weeks, we leave its current budget ratio unchanged and skip performance ranking.


2. Sort Campaigns By Best To Worst Performance

We sort your campaigns from best to worst performers, using the CPA or ROAS calculated above.


3. You Set The Maximum Adjustment %

You set the size of the maximum recommended changes in the Budget Settings tab (default is +-5%).

For example, if you set this to 5%, it means the largest budget change made to a campaign's daily budget will be +5% for the best performer and 5% for the worst performer.


4. Change Percentages Calculated

The best performing campaign will be increased by no more than the maximum percentage, provided the campaign has the capacity to spend the additional budget.

The worst-performing campaign will be reduced by no more than the maximum percentage.

Campaigns in between will have recommended budgets that progressively scale from the best to the worst campaigns.

To use a conceptual example:

Maximum Adjustment = 10%

Campaign Name

CPA

Current Budget

Recommended Budget

% Change

Cpg 1

$2.00

$10

$11

+10%

Cpg 2

$3.00

$5

$5.25

+5%

Cpg 3

$4.00

$15

$15

0%

Cpg 4

$5.00

$5

$5.25

-5%

Cpg 5

$6.00

$10

$9

-10%

The actual algorithm that's used to calculate the % change is far more complex than this example, but the table shows a representation of the general objective behind moving budget from worst to best performers.


6. Some Campaigns Stay as They Are

Campaigns are excluded from recalculations if they:

  • Have been manually locked

  • Have hit their minimum or maximum budget

  • Don’t have enough recent conversion data

In these cases, we keep their current ratio unchanged.


The Bottom Line

Every time budget weightings are updated:

  • All changes respect the limit you selected

  • No campaign goes over its Max Spend +10% (meaning the campaign has the potential to spend the budget we are allocating)

  • Final weightings always add up to 100% of the current Daily Budget total


How to apply the Daily Budget Recommendations

  • Click 'Edit Daily Budgets' from the triple-dot menu

  • Review the Recommendations, and you can either

    • Update rows manually with the recommended values

    • Select 'Accept All Recommendations', which will update the 'New' column with all the recommended values

  • Press 'Update Budgets' and confirm via the modal

  • The updated budgets are sent to the respective platforms immediately

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