Optimize Budgets - User Guide
The Optimize Budgets One-Click Optimization™ lets you optimize budgets for AdWords by translating them from monthly to daily budgets. This can be done to achieve a target or allocate more budget to campaigns that are driving more leads/sales.
How does it work?
The Optimize Budget One-Click Optimization analyses the spend for campaigns and shared budgets in your accounts. It helps you re-arrange your target budget basis spending capability of individual and shared budgets. This tool suggests balancing budgets by taking a part of the budget amount which won't end up being spent. This amount can be easily allotted to the ones which are losing search impression share.
1. Define Scope & Target Budget
After selecting scope and date range, you can enter the budget which you'd like to spend for your account/selected budgets and click on update. You will find the following columns:
- Target Budget - The budget that has to be spent by the end of the selected date range
- Projected spend till the end of Selected date range - The amount of money that will be spent to the last date in the date range
- Actual spend till yesterday - The amount of money that has already been spent till the day of analysis
- Required daily spend to hit "Target Budget" - How much the campaigns should spend every day for the rest of the date range to meet the target budget. If you have an additional budget available to meet your target, you can go on to the next step.
2. Analyze Budget Optimization Suggestions
The budgets which are losing impression share will be highlighted in yellow(screenshot below) and shown at the top.
- Daily Budget - Current daily budget for the entity
- New Daily Budget - The new daily budget
- Projected Spend - The amount which a budget will end up spending by the end of the selected date range
- IS Lost (Budget) - Impression share lost due to budget restrictions
The tool will also recommend increasing budget for budgets which might end up losing impression share in time to come. This will be highlighted by an encircled "!".
3. Reallocate budget (Coming soon)
You can choose to view suggestions with two options:
- Without decreasing other budgets
- By decreasing other non-performing budgets - This option highlights the budgets in red which are not capable of spending the allotted existing daily budget.
4. Budget Simulator
It is the latest addition to the tool. For a selected date range, the tabulated information in Budget Simulator is calculated by using the impression share lost due to budget in last 7 days and any expected seasonal surges. It calculates and suggests multiple options for setting New Daily Budget and how much money can be spent over the period of the selected date range. There are two columns in the Budget Simulator:
- Daily Budget - A table of options for New Daily budget options which the selected shared/individual budget is capable of exhausting
- Projected Spend - The amount of money the campaign can spend if you select its corresponding suggested Daily budgets.
After adjusting the budgets from suggestions, apply the changes to the account in one click from the top right corner in the tool.
Why should you use it?
The Optimize Budget tool makes it easy to:
- Reallocate budget to campaigns that are performing well
- Adjust campaign or shared budgets to meet a certain target budget for the month
- Allocate budget based on the spending potential of the campaign based on impression share. For example, if a campaign can only spend up to $200/day, there is no point allocating $500/day as the extra $300 will not get used.
- We recommend using individual budgets for every campaign because using the most granular settings produce the optimal results
- The tools work with shared budgets, a mixed of shared budgets, and individual campaign budgets
Read more about tools for budget management in our blog post here