Optimize Budgets - User Guide
The Optimize Budgets tool 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 tool 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 now. The amount of money that has already been spent until the day of analysis.
- Required daily spend to hit target. 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 and shown at the top.
- Daily Budget - Current daily budget for the entity.
- Edit Daily Budget - Option to set a new daily budget.
- Projected Spend - The amount that a budget will end up spending by the end of the selected date range.
- Recent IS Lost (Budget) - Impression share lost due to budget restrictions.
3. Reallocate budget
You can choose to view suggestions with two options:
- Without decreasing other budgets.
- By decreasing low performing budgets if needed. This option highlights in red the budgets which are not capable of spending the allotted existing daily budget.
4. Budget Simulator
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 by clicking Save on the top right of the page.
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 considering the spend potential of the campaign based on impression share.
- 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.
You can read about troubleshooting questions here.