Budget and spending control
The algorithm bids in order to reach your strategy’s ACOS and avoid running out of budget on any campaign. It changes the budget allowance every day, based on the historical spending of each campaign
Our algorithm bids to optimise performance:
- If the target ACOS is met, then the more you spend, the more you earn
- If the ACOS is way above the target ACOS, the algorithm will decrease bids and cost by itself
Check out our common questions on budget management
The algorithm sets daily budgets in order not spend too much until it learned how to optimise the sales.
The algorithm changes the budget allowance every day based on sales and costs in order to avoid running out of budget. When a campaign runs out of budget, the algorithm increases the budget up to 3 times the previous budget.
The algorithm labels surges and unexpected drops in order to remove them from its learning process.
Three features let you control your spendings :
- ACOS Target -> The algorithm adjust the bids in order to reach your ACOS target. It is the easiest way lower or increase the spending. It is the first priority of the algorithm until you set up a min daily spend or a target daily budget. It gives less control over your spending than the 2 following features. You should understand what happens when you change the ACOS target before lowering or increasing it
- Min daily spend -> The minimum the algorithm spends on a daily basis. It helps you force the algorithm to spend money
- Target daily budget -> A soft spending limit the algorithm does not outreach, more or less. It helps you limit the money the algorithm spend.
Be realistic in your expectations. Sustainable strategies at 2% ACOS targets are rarely seen.
What happens when Minimum Daily Spend and Target Daily Budget are close?
Minimum Daily Spend tells the algorithm to spend a certain minimum amount every day whereas Target Daily Budget constraint the spending. Setting closes value for both these parameters limits the freedom of the algorithm. It might lead to poor performance
How to choose between min daily spend and increase the ACOS ?
Your strategy is not spending enough and you want to tell the algorithm that he can spend more but you don’t know which method to use.