DYNAMIC BUDGET ALLOCATION (DBA):
This new feature, as of February 2021, allows users to control budget and pacing at the campaign level. DBA leverages Teads’ AI to distribute the campaign budget dynamically among various line items to maximize the scale of your campaigns. Other benefits include:
Faster setup of your multi-strategy campaigns - Go live by easily setting up budgets solely on the campaign level
Minimizes manual, day-to-day labor - Eliminates the need for ongoing budget updates during the campaign flight.
Optimized for scale and campaign results - Teads’ AI automatically adjusts budget allocation across line items to maximize outcomes and reach your campaign spend goal.
Maintain control - The user has the option to specify a maximum daily budget for each line item.
How does it work?
In the campaign settings before creating a line item:
Toggle the Dynamic Budget Allocation option in the budget section of the campaign level.
Select how the campaign daily spend goal is defined:
With dynamic budget allocation enabled, you do not need to specify a budget for each line item. However, you can optionally set a limit to the amount that Teads' AI will allocate daily to each line item. To do so, go to the line item budget settings:
Click on set maximum daily budget
Set the daily budget limit that Teads' AI should not exceed for this given line item.
Please see a video from Teads showing how to use Dynamic Budget Allocation in TAM!
Question: How does Teads' AI distribute the budget between line items when Dynamic Budget Allocation is enabled?
Answer: Every day, Teads' AI adjusts the budget allocation based on the effective spend of the previous day, in order to maximize outcomes and achieve the campaign’s spend goal. Line items that don’t reach their allocated daily target receive less budget on the next day, while line items that reach their daily target may receive more budget.
If DBA is activated right from the beginning of the campaign, the system starts by allocating budget evenly across the different line items.
Question: How frequently is the budget allocation updated?
Answer: By default, the budget allocation is updated at the start of every new day in the campaign's timezone. When major changes are made on a campaign (such as changing the total budget, changing dates or adding new line items), the allocation is recalculated within less than 1 hour to take those changes into account.
Note: when activating a new campaign with Dynamic Budget Allocation, delivery may take a few minutes (up to 15 minutes) to start.
Question: If one line item has enough scale to spend the entire campaign budget, will it receive the full budget and leave nothing to the other line items?
Answer: No. If an even distribution between all line items is compatible with delivering the full campaign budget, then DBA will favor this distribution. Different line items will be granted different budgets only to the extent necessary to deliver the full campaign budget.
Question: Is it possible to pace Ahead or ASAP with Dynamic Budget Allocation?
Answer: Dynamic Budget Allocation allows to control pacing at campaign level, where you have two options:
Let the campaign pace evenly across the campaign’s flight (select Campaign Daily Spend Goal: Auto)
Set a daily spend goal manually (Campaign Daily Spend Goal: Manual)
Non-even pacing modes can be achieved by controlling the Campaign Daily Spend Goal manually.
Question: Can I add new line items to a live campaign that has Dynamic Budget Allocation?
Answer: 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.
Question: Can I pause some line items on a live campaign that has Dynamic Budget Allocation?
Answer: 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.
Question: Can I change the total budget of a live campaign that has Dynamic Budget Allocation?
Answer: Yes. If your Campaign Daily Spend Goal is “Auto” then Teads' AI will automatically recalculate the budget allocation within 1 hour to take the total budget change into account. If your Campaign Daily Spend Goal is “Manual” then you may want to also change the set Campaign Daily Spend Goal to make it consistent with the campaign’s total budget.
Question: Can I change the manual Campaign Daily Spend Goal when the campaign is live?
Answer: Yes. Teads' AI will recalculate the budget allocation within 1 hour after the Campaign Daily Spend Goal change.
Question: Can I disable Dynamic Budget Allocation on a campaign that is still live?
Answer: Yes: in the campaign settings, toggle off the Dynamic Budget Allocation option in the Budget section.
After disabling DBA, all line items are on daily budgets. The line items’ daily budgets become editable and are set by default to the latest value calculated by the DBA algorithm.
Question: How does the “Auto” Campaign Daily Spend goal work?
Answer: Suppose your campaign has a $10,000 total budget and a 10 day flight. With the “Auto” Campaign Daily Spend Goal, Teads' AI will attempt to spend $1,000 every day (and will automatically distribute these $1,000 between the different line items). If only $500 were spent at the end of the first day, then Teads' AI will attempt to spend $1,055 on the next days (= $9,500 remaining budget / 9 remaining days), and so on.
Question: How does the “Manual” Campaign Daily Spend Goal work?
Answer: If you set a manual Campaign Daily Spend Goal, then Teads' AI will attempt to spend the set amount every day, until the campaign’s end date is reached or the campaign’s total budget is spent.
If the set Campaign Daily Spend Goal is too low (e.g. your campaign has a $10,000 total budget for a 10 day flight, and the set daily spend goal is $800) then your campaign may deliver less than its total budget.
If the set Campaign Daily Spend Goal is too high (e.g. your campaign has a $10,000 total budget for a 10 day flight, and the set daily spend goal is $1,500) then your campaign may deliver its total budget before reaching its end date.
Question: Can I set a maximum daily budget on all my campaign’s line items?
Answer: It is possible to set a maximum daily budget on all your campaign’s line items. However, if the sum of all the line items’ maximum daily budgets is lower than the campaign’s daily spend goal, your campaign is expected to under-deliver. We generally recommend to avoid setting too many constraints on line item budgets when Dynamic Budget Allocation is activated.
Question: Can I use Dynamic Budget Allocation when my campaign has “Added Value” lines?
Answer: Yes. Since any given line item is either paid or Added Value, DBA will:
Distribute dynamically the campaign’s paid budget between the paid line items
Distribute dynamically the campaign’s Added Value budget between the Added Value line items
If you choose to use a “manual” Campaign Daily Spend Goal, then you will need to set a daily goal for the paid budget and a daily goal for the Added Value budget.