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Budget Optimizer

Learn how to allocate optimized budgets with Budget Optimizer powered by Marketing Mix Modeling

Updated over 7 months ago

Once the model is ready, you can access the Budget Optimiser to optimize your future ad spends. Based on the historical data, the model predicts what should be the optimum distribution of the budget that will bring maximum results.

The model automatically optimizes your budgets for the period of next week. In the report, you can view the optimized budget plan and the estimated performance of your marketing activities as suggested by the marketing mix model.

Budget Planning

You can also change your budget and reallocate the budget for each channel based on the new analysis

  1. Select the percentage of past spend you want to optimize. The budget can be set from 50% to 500% of the past spend, which is the average ad spend over the past four weeks.

  2. Select the period you would like to optimize the budget for. The budget period can be set as “Next week” or “Next month”.

  3. The platform will distribute the budget across channels as per the best model and you would be able to see original vs optimized ad spend distribution.

  4. You also have the option to input Target ROAS (if KPI data type is Revenue) or Target CPA (if KPI data type is anything except Revenue).

  5. You can set budget constraints for different platforms to keep your budget within specified limits. You can opt from preset modes—Conservative, Moderate, or Aggressive—to manage your spending:

    1. Conservative: The existing budget constraints are adjusted to 0.75 times for the lower limit and 1.5 times for the upper limit.

    2. Moderate: Budget constraints are modified to 0.5 times for the lower limit and doubled for the upper limit.

    3. Aggressive: The budget limits are significantly altered to 0.01 times for the lower threshold and 4.99 times for the upper threshold.

The optimized budget plan will be represented in the following date range filters -

Next Week: The coming week from Monday through Sunday

Next Month: The coming month from the first day through the last day of that month

Next Quater: The coming Quater from the first day through the last day of that Quater

The diminishing returns curve will represent the optimal spend level for scaling your spend without overspending for the increased spends

If you have any further queries, please write to us at [email protected] and we'll get back to you at the earliest.

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