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About Dynamic Budget Allocation

This section explains what Dynamic Budget Allocation is and how to utilize it for your Teads Ads Manager campaign.

Updated over 8 months ago

Introduction to Dynamic Budget Allocation (DBA)

This feature allows users to control budget and pacing at the campaign level. Leveraging Teads' AI capabilities, Dynamic Budget Allocation dynamically distributes the campaign budget across various line items, maximizing the scale and effectiveness of your campaigns.

Benefits of Dynamic Budget Allocation include:

  • Faster setup of multi-strategy campaigns: Able to go live by setting up budgets solely at the campaign level, simplifying the process.

  • Minimized manual labor: Eliminate the need for ongoing budget updates during the campaign flight, reducing day-to-day management efforts.

  • Optimization for scale and campaign results: Teads' AI automatically adjusts budget allocation across line items, ensuring optimal outcomes, helping you achieve your campaign spend goal.

  • Maintained control: Users have the option to specify a maximum daily budget for each line item, retaining control over budget allocation.

How to activate it in your campaign

Before creating a line item in the campaign settings, follow these steps:

  1. Enable Dynamic Budget Allocation:

    • In the budget section of the campaign level, toggle the Dynamic Budget Allocation option to activate it.

  2. Define the Campaign Daily Spend Goal:

    • When using Dynamic Budget Allocation, there is no need to specify a budget for each line item. However, you have the option to set a limit on the daily allocation performed by Teads' AI. To do this, proceed to the line item budget settings.

  3. Set the Maximum Daily Budget:

    • Within the line item budget settings, click on "Set Maximum Daily Budget."

    • Specify the daily budget limit that Teads' AI should not exceed for the specific line item.

Frequently Asked Questions

How does Teads' AI distribute the budget between line items when Dynamic Budget Allocation is enabled?

If DBA is activated right from the beginning of the campaign, the system starts by allocating budget evenly across the different line items.

Teads' AI dynamically adjusts the budget allocation on a daily basis, leveraging the effective spend from the previous day to optimize outcomes and attain the campaign's spend goal. Line items that do not reach their allocated daily target receive less budget on the next day, while line items that reach their daily target may receive more budget.

Note: DBA takes into account the campaign's budget & flight details, not the line items'.

To ensure even delivery of the campaign's budget and to avoid underspending, ensure that there is at least 1 line item (Paid and Added Value, if applicable) scheduled to run on each day of the campaign's flight period.

How frequently is the budget allocation updated?

By default, the budget allocation is refreshed at the beginning of each day according to the campaign's timezone. However, when significant campaign modifications occur, such as adjusting the total budget, modifying dates, or adding new line items, the allocation is recalculated within a span of less than 1 hour to incorporate those changes.

Note: when activating a new campaign with Dynamic Budget Allocation, it may take a few minutes (up to 15 minutes) for delivery to commence.

In the scenario where a single line item possesses sufficient scale to exhaust the entire campaign budget, will it receive the complete budget, leaving no allocation for the other line items?

No. If an equal distribution among all line items allows for the full campaign budget to be utilized, Dynamic Budget Allocation (DBA) will prioritize this distribution. Varied budgets will only be allocated to different line items as required to achieve the campaign's complete budget allocation.

Is it possible to pace Ahead or ASAP with Dynamic Budget Allocation?

Dynamic Budget Allocation provides the ability to manage pacing at the campaign level, offering two options:

  1. Allow the campaign to evenly distribute the budget throughout the campaign's flight (select Campaign Daily Spend Goal: Auto).

  2. Set a specific daily spend goal manually (Campaign Daily Spend Goal: Manual).

Non-even pacing modes can be achieved by manually controlling the Campaign Daily Spend Goal.

Can I add new line items to a live campaign that has enabled Dynamic Budget Allocation?

Yes. Teads' AI will recalculate the budget allocation within 1 hour after the activation of the new line items, in order to take these new lines into account.

Can I pause some line items on a live campaign that has enabled Dynamic Budget Allocation?

Yes. Teads' AI will recalculate the budget allocation within 1 hour after the deactivation of the line items, in order to redistribute their budget to the other line items.

Can I change the total budget of a live campaign that has enabled Dynamic Budget Allocation?

If you have selected "Auto" as your Campaign Daily Spend Goal, Teads' AI will automatically adjust the budget allocation within 1 hour to incorporate any changes made to the total budget.

However, if you have chosen "Manual" as your Campaign Daily Spend Goal, it is advisable to ensure that the set Campaign Daily Spend Goal aligns with the campaign's total budget for consistency.

Can I change the manual Campaign Daily Spend Goal when the campaign is live?

Yes. Teads' AI will recalculate the budget allocation within 1 hour after the Campaign Daily Spend Goal has been changed.

Can I disable Dynamic Budget Allocation on a campaign that is still live?

Yes, in the campaign settings, toggle off the Dynamic Budget Allocation option located in the Budget section.

Once Dynamic Budget Allocation (DBA) is disabled, all line items will be assigned daily budgets. These daily budgets can be edited and are initially set to the most recent value calculated by the DBA algorithm.

How does the “Auto” Campaign Daily Spend goal work?

Let's consider a scenario where your campaign has a total budget of $10,000 and a 10-day flight. When using the "Auto" Campaign Daily Spend Goal, Teads' AI aims to spend approximately $1,000 per day. This $1,000 budget is automatically distributed among the different line items.

For instance, if only $500 was spent by the end of the first day, Teads' AI will adjust the allocation for the remaining days. In this case, it would aim to spend approximately $1,055 per day for the remaining 9 days, as there is a remaining budget of $9,500 divided by 9 days. This process continues accordingly.

How does the “Manual” Campaign Daily Spend Goal work?

When you set a manual Campaign Daily Spend Goal, Teads' AI will strive to spend the specified amount each day until either the campaign's end date is reached or the total budget is fully utilized.

Note the following considerations:

  • If the set Campaign Daily Spend Goal is too low, for example, if your campaign has a total budget of $10,000 for a 10-day flight and the set daily spend goal is $800, it is possible that your campaign may not achieve its total budget by the end.

  • On the other hand, if the set Campaign Daily Spend Goal is too high, for example, if your campaign has a total budget of $10,000 for a 10-day flight and the set daily spend goal is $1,500, your campaign may exhaust its total budget before reaching the scheduled end date.

It's important to strike a balance between the Campaign Daily Spend Goal and the campaign's total budget to ensure optimal delivery and alignment with your campaign objectives.

Can I set a maximum daily budget on all my campaign’s line items?

You can set a maximum daily budget for each line item in your campaign. However, if the combined maximum daily budgets of all line items are lower than the campaign's daily spend goal, your campaign may under-deliver. It is advisable to minimize constraints on line item budgets when using Dynamic Budget Allocation to optimize campaign delivery.


Can i use Dynamic Budget Allocation when my campaign has Added Value lines?

Yes. When using Dynamic Budget Allocation (DBA), the campaign's paid budget will be distributed dynamically among the paid line items, while the campaign's Added Value budget will be distributed dynamically among the Added Value line items.

If you opt for a "manual" Campaign Daily Spend Goal, you will need to set a daily goal for both the paid budget and the Added Value budget.

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