Kapoq recently launched our new Budget Automation feature, with support for multi-channel, multi-account budget controls. Read on to discover how this new feature works, what makes it special, and how your brand or agency can utilize it in your day-to-day operations!
How Budget Automation Works in Kapoq
Budget automation in Kapoq is designed to simplify your ad spend — it automatically calculates suggested bids for your campaigns and sends them to Walmart or Amazon.
Budget automation is used to achieve a monthly target amount that’s set at the budget group level. This is especially helpful if you have a monthly ad spend target for a budget group composed of many campaigns.
Our unique Budget Automation algorithm will update budgets for campaigns in your selected budget group each day to try to hit the monthly ad spend target as closely as possible.
With the help of Amazon Marketing Stream (AMS) for real-time data on ad spend, your budgets can be optimized intraday.
What Makes Budget Automation Special
Complete Customization
This should come as no surprise if you’ve used Kapoq for any amount of time, but our Budget Automation offers complete customization for which campaigns are included in each budget group, and what performance metrics are used to generate new budgets.
This gives you full control over which campaigns receive budget, and how you want to gauge the success of your campaigns. This granularity allows you to maintain control over your campaigns while still automating and optimizing the process.
Calendar View
We offer a calendar view within Budget Automation, which allows you to override the default equal budget pacing by day of the week or day of the month.
For example, you might want to increase budgets every Saturday and Sunday, because your product is most commonly purchased on the weekends.
Or, more popularly, you would want to increase budget on Prime Day, Cyber Monday, or other tentpole events. This allows you to put more budget behind big sales opportunities while still capping your monthly budget overall.
Three optimization modes
Within Budget Automation, Kapoq offers three modes for how to optimize your campaign group. Each mode prioritizes a different metric, which all depend on your goals for your campaign.
- Prioritize Spend: Allocates spend proportional to historical spend, without considering campaign efficiency.
- Prioritize ACOS: Prioritizes budget for campaigns with the lowest ACoS, where ACoS = ad spend / ad sales.
- Prioritize CPA: Prioritizes budget for campaigns with the lowest CPA, where CPA = ad spend / ad orders.
Here’s an example of how Prioritize Spend differs from Prioritize Efficiency (ACoS/CPA).
In this example, our monthly target spend for the group is $20,000, and we have an MTD spend of $10,000. We’re starting this on the 21st day of a 30-day month, so our target spend is $1,000 a day.
Based on this, here’s how the budgets would look across our different campaigns and options:
As you can see, the Prioritize Spend option allocates budget proportionally based on spend forecast; it doesn’t take efficiency metrics into account. Every campaign receives a proportional share, so even the least efficient campaign can receive a significant budget.
On the other hand, Prioritize Efficiency funds the most efficient campaigns first and then drastically reduces the budget for the least efficient campaign. This means more budget is allocated to more efficient campaigns.
Both options have their place in your advertising strategy — it just depends on your goals for each campaign.
How Brands and Agencies Can Use Budget Automation
Brands and agencies can utilize this new feature in a few key ways to optimize their advertising strategies for both themselves and their clients.
If you or your client are very strict on how much you can spend in a given month for financial reasons, you can use Budget Automation as a limiter to ensure you don’t overspend on any given month. You’ll never go over your set budget.
On the other side, some brands or agencies who are less limited in how much they can spend each month might use Budget Automation to improve the efficiency of select campaigns. You might be attempting to improve your ROAS or overall sales, both of which can be achieved as goals of a Budget Automation campaign.
Try out the Budget Automation feature yourself during your free demo of Kapoq. Sign up today!
