How Budget Allocation Recommendations are calculated
Adpulse uses a three-part algorithm to calculate the most efficient allocation of budget between your campaigns. The objective of this calculation is to improve performance by ensuring that your spend is always biased toward your best-performing campaigns whilst still targeting your overall spend target.
We calculate the ideal daily spend between today and the end of your selected time period, taking ad scheduling into account (for example, if you don’t run ads on Sunday’s then the ideal daily spend is based on 6 spending days per week rather than 7)
Adpulse assesses your current spend pattern to determine if your current campaigns budget levels are set correctly in order to hit your desired spend target. If your current budgets are resulting in under-pacing, Adpulse will calculate a level of budget padding that help to increase actual daily spending so it’s closer to the ideal calculation (Step 1)
Once we know what your total daily budget should be set to, Adpulse will then look at a number of factors to rank campaigns in terms of performance and spend potential, allowing us to recommend how much budget should be moved from poorer performing campaigns and allocated to better performers.
Some of the factors included in the algorithm are:
- Bid Strategy type (some bid strategies react poorly to large budget changes)
- The campaign spend pattern over the last 7 and 28 days
- Campaign performance
- Any budget locks you have applied
In some under-pacing situations, your current budgets will need to be increased (not just reallocated across your campaigns) which is why you may see the recommended budget being higher than the sum of your current budgets.
How to apply the Budget Allocation Recommendations
- Click 'Edit Budget Allocations' from the triple dot menu
- Review the Recommendations and you can either
- Update rows manually with the recommended values
- Select 'Accept All Recommendations', with 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