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Introduction
Always-On Budget Optimization enables you to quickly detect segments in Sponsored Products (Classic and Custom), Sponsored Brands and Sponsored Display goals which have strong performance, and have been hitting their daily budget limits - if you increase your budgets, you will be able to prevent your campaigns from running out of budget, while maintaining an ACoS at or below your target ACoS.
Always-On Budget Optimization will provide recommendations to increase your budget on goals (or Segments within goals) when:
There are campaigns in the goal going dark (running out of budget before the day ends)
Realized ACoS is less than target ACoS
This saves you the time and effort required to determine which Sponsored Products goals have been running out of daily budget, and how much the budgets should be increased to prevent the goals from running out of budget at the end of the day.
🚨Note 🚨
If you haven’t received a recommendation in a while, it is likely that none of your campaigns or segments qualify for a recommendation, based on the filtering criteria we use to find eligible segments. Read the detailed breakdown section in this article to get a more in-depth view of exactly what criteria we use to surface opportunities to increase budgets.
Detailed Breakdown
Our Always on Budget Optimization will send recommendations for budget increases for campaigns that have been performing below target ACoS, and have been hitting their daily budget limit.
Here is a more detailed list of criteria we use to identify which segments we should send budget increases for:
The segment has had at least 1 budget shortage in the last 7 days
Average budget utilization for the segment in the last 7 days is over 50%, with at least 1 day where it is over 75%. This is to prevent recommending a budget increase just based on a single outlier day of high spend, and to take historic need into account instead.
The segment has more than 1 day of performance data, in the last 7 days. We don’t want to make recommendations for newly launched segments, or segments that have recently been unpaused, since we won’t have enough data to make a data-driven recommendation.
The segment’s realized ACoS in the last 7 days is below the segment’s target ACoS. We use this threshold so we don’t recommend budget increases for segments that are performing poorly, which would result in wasted spend.
In the past 5 days, the segment budget or enabled/paused status has not been changed. This condition ensures we are using data based on performance that is relevant to the segment state.
🚨Note 🚨
There are no required inputs for Always-On Budget Optimization.
Each goal can only be in one Always-On Budget Optimization Strategy.
Best Practices
We recommend turning on Always-On Budget optimization for ALL of your goals, even if you have a fixed budget.
If you have a flexible budget, you will get recommendations when your goals are performing below target ACoS and you have an opportunity to spend more at or below your target ACoS to generate more sales. This will ensure you aren't missing out on sales later in the day.
If you have a fixed budget, you can make decisions on potentially transitioning budgets from certain goals to goals that are going dark prior to the end of the day. Even if you aren't able to transition the budget from certain goals to other goals, it may be helpful to have visibility into which goals are doing dark, as you may want to slowly lower the ACoS targets on these goals.
As there are no inputs, the recommendations you receive for this Strategy will be the same no matter how you group your goals into strategies. You may want to separate goals if you have certain goals where you have a flexible budget and other goals where you have a fixed budget within your account.
How To Apply It
Article last updated November 2023. If you find this information to be out of date, please contact hello@perpetua.io.