How budget distribution works

The budget distribution feature ensures effective and strategic allocation of campaign budgets across ad objects while maintaining adherence to the overall budget cap. It is designed to:

• Maximize Efficiency: Dynamically allocate budgets to align with campaign goals and ad object performance.
• Ensure Compliance: Respect marketplace constraints such as minimum budget thresholds.
• Enable Control: Provide tools for locking budgets and preventing misallocation, giving advertisers greater control over critical ad objects.
• Enhance Flexibility: Adjust budgets in real-time based on performance trends and changes to campaign parameters.
  
  

By automating budget allocation, this feature reduces manual intervention while optimizing resource use to drive campaign performance.

Spend Allocation Process and the Role of Locking

Budget allocation follows a structured process to ensure fairness, compliance, and prioritization of key ad objects. The system applies three sequential steps:

1. Allocate Locked Budgets:

• Locked budgets are distributed first, ensuring critical ad objects receive consistent funding.
• Example:
  • Campaign budget: $1,200.
  • Ad Object A has a locked budget of $400.
  • Remaining budget after locking: $800.
    
    

2. Apply Minimum Budget Thresholds:

• Non-locked ad objects receive the marketplace-defined minimum budget, which may vary by country.
• Example:
  • Two unlocked ad objects (B and C) require a minimum of $10 each.
  • Total minimum allocation: $20.
  • Remaining budget: $780.
    
    

3. Distribute Remaining Budget Based on Spending Ratios:

• The remaining budget pool is allocated proportionally to unlocked ad objects based on their prior period spending.
• Example:
  • Previous period spending:
    • Ad Object B: $300.
    • Ad Object C: $500.
  • Total spend ratio:
    • B: $300 / ($300 + $500) = 37.5%.
    • C: $500 / ($300 + $500) = 62.5%.
  • Remaining budget distribution:
    • B: 37.5% × $780 = $292.50.
    • C: 62.5% × $780 = $487.50.
      
      

Final Distribution:

• Ad Object A (locked): $400.
• Ad Object B: $10 (minimum) + $292.50 = $302.50.
• Ad Object C: $10 (minimum) + $487.50 = $497.50.
  
  

This structured process ensures locked budgets are prioritized, marketplace rules are adhered to, and remaining resources are distributed fairly based on past performance.

How to Lock and Unlock a Budget

How to lock a budget:

On the ad object optimization eTable, in the Ad object budget column, click the eDots to edit a budget for the ad object. By setting a budget this way, you will lock the ad object’s budget. You can also do this on the campaign detail pages.

How to unlock a budget:

When a budget is locked, if you follow the same process, you will see a new option called “Enable auto-distribution”. 

3 Scenarios that Trigger Budget Distribution

Budget distribution is triggered under specific scenarios to ensure continuous alignment of resource allocation with campaign goals and real-time performance. Each scenario represents an operational event that initiates a redistribution process, ensuring budgets are always optimized.

Scenario 1: Daily Budget Distribution

• When It Happens: At midnight each day.
• Trigger: The system resets and recalculates budgets for all ad objects in a campaign to reflect the previous day’s performance.
• How It Works:
  • Examines the total campaign daily budget and allocates resources proportionally based on the prior day’s spending.
  • Ensures compliance with marketplace minimum thresholds.
• Example Trigger Event:
  • A user schedules the daily budget cap at $1,000, and the system initiates redistribution at the end of the day, aligning allocations for the new day.
    
    

Scenario 2: Budget Redistribution

• When It Happens: Every 30 minutes, every day.
• Trigger: Ongoing campaign activity prompts periodic checks for budget alignment with real-time performance.
• How It Works:
  • Adjusts budgets dynamically to reflect changes in ad object performance and spending trends up to the most recent 30-minute interval.
  • Redistribution may pause if:
    • A storefront’s "push-enabled" status is set to No.
    • An ad object is actively "Publishing."
• Example Trigger Event:
  • Ad Object A experiences a surge in engagement mid-campaign day, consuming more of its allocated budget than expected. The system identifies this trend during the 30-minute check and redistributes remaining resources to support higher-performing ad objects.
    
    

Scenario 3: Auto Budget Distribution

• When It Happens: Triggered by user-driven or system-driven events like manual budget editing or budget scheduling.
  

• Triggers:
  • A user manually updates the campaign’s daily budget.
  • The budget scheduler activates a new budget or campaign cycle.
• How It Works:
  • Redistributes remaining budgets instantly to align with the updated campaign budget.
  • Excludes locked ad objects from redistribution.
• Example Trigger Event:
  • A user increases the campaign budget from $1,000 to $1,200 mid-day to capitalize on a sudden market opportunity. The system triggers redistribution to reflect the updated budget allocation.
    
    

General Workflow & Features

• Real-time Transparency:
  • Adjustments are visible instantly on the campaign dashboard.
  • Tooltips and status flags explain conditions affecting redistribution or locking.
• Dynamic Error Detection:
  • Automatic checks flag issues like exceeding marketplace-imposed limits.
  • Errors are contextualized with actionable insights.
• Flexibility in Management:
  • Redistribution halts if conditions (e.g., "push-disabled" storefronts or active "Publishing" states) are unmet.
  • Detailed logs ensure transparency and traceability.
    
    

Key Takeaways

• Purpose-Driven Efficiency: The feature ensures budgets are allocated dynamically, respecting campaign goals and constraints.
• Granular Control: Locking enables managers to prioritize specific ad objects while maintaining overall budget efficiency.
• Flexibility and Transparency: Dynamic real-time updates, tooltips, and logs provide actionable insights and operational clarity.
• Compliant and Strategic: The system adheres to marketplace rules while optimizing performance and ensuring alignment with campaign strategies.
  
  

FAQs

Could there be a situation where Epsilo cannot pause the budget in time due to system latency after it has been distributed across multiple objects?

No, this will not happen. When the budget is allocated to each ad object, the same budget cap is directly applied to the ad object in Seller Center. Once the actual spend for an ad object reaches its budget cap, Seller Center will immediately pause the ad on its end. This status is then synchronized back to Epsilo.

What happens if I change the campaign budget to a value lower than the current budget?

The new campaign budget will be redistributed to each ad object. However, the system requires the new campaign budget to be higher than the actual spend for the current day.

Can I disable budget distribution?

Currently, this is not an option. However, you can effectively opt out of the feature by setting the campaign budget to "No Limit."

How long does it take for the new budget distribution on ad objects to be reflected in Seller Center?

The time required depends on the number of ad objects included in the change. Based on current benchmarks, it takes approximately 4 minutes at maximum.

Can I trigger budget distribution for a campaign with a "Paused" status?

No, due to marketplace logic that prevents changes to paused ad objects. Epsilo’s budget distribution is designed to work only for campaigns and ad objects with an "Ongoing" status. To redistribute the budget for a campaign, ensure that it is resumed beforehand.