Budget Pacer is a tool specifically designed to help you make data-driven budget recommendations and optimize your campaigns to achieve performance goals.
What is Budget Pacer?
Budget Pacer runs a client's historical and current performance data through Shape's budget and pacing algorithms to predict how campaigns will perform over time. On a daily basis, a PPC professional can view their Budgets’:
- Current performance metrics
- Projected performance metrics at the current pace
- Projected performance metrics at the suggested pace
Budget Pacer helps Shape members answer the following questions:
- Will my campaigns hit their target spend/performance goals by the end of my Budget cycle?
- If I change my daily Budgets, how will that impact my performance?
- What is the highest spend I can drive while maintaining my performance goals?
Where do I find Budget Pacer?
Budget Pacer can be accessed from two places. On the Dashboard's left-hand navigation menu, there is a link to "App Gallery" that is available at any time. Clicking into the "App Gallery" sends you to a page where you can select Budget Pacer, Budget Booster, or the Shape API.
You can also access Budget Pacer by selecting the App Portals button that appears on the top navigation menu after clicking into a Client or Budget page.
How Does Budget Pacer work?
Shape collects, measures, and stores daily snapshots of each campaign's spend and spend potential. The platform utilizes performance metrics including (but not limited to) "daily budget" and "impression share lost due to budget" to provide spend and performance estimates.
Shape leverages these numbers to calculate the maximum possible daily spend campaigns can achieve. By projecting that number across the length of your Budget cycle, Shape calculates the maximum optimal spend campaigns can hit.
For example, imagine you are running campaigns to promote “Awesome Steel Chairs.” You currently spend around $110 a day and are on track to hit approximately $3500 in total spend for the Budget cycle according to your “Current Pace.”
Unfortunately, your available Budget is only $2150.
The “Target Daily Spend” feature will actually recommend you decrease your target daily spend approximately $65 a day to make sure you don't exceed $2150. Shape even tells you exactly what Suggested Daily Budget corrections set per campaign to ensure you don’t overspend.
But if your campaigns are on track to spend $3500, then clearly you have the opportunity to spend more than your $2150 spend cap. The question is: how much more and will the results be worth it?
Maximum Spend per Day will tell you what your campaigns need to spend in order to maximize the inventory ads are displaying for.
In the “Awesome Steel Chairs” example, Budget Pacer is reporting that you can spend upwards of $300 a day ($9300/month). By entering $300 into the “Target Daily Spend” field, Shape will automatically project new spend and performance metrics for the rest of the Budget cycle.
Can I optimize my Budgets based on my KPIs?
Shape understands that most PPC clients have goals beyond just achieving their target monthly spend. Budget Pacer helps ensure that PPC accounts achieve both their target spend and performance metrics.
Once you’ve set a Budget’s "Target Daily Spend," you can select whether you would like Budget Pacer to recommend daily budgets based on a weighted, balanced, or optimized model for the distribution of ad dollars.
Selecting “Balanced” distribution tells Budget Pacer to recommend increases or decreases to Current Daily Budgets that are evenly spread across campaigns.
With “Optimized” distribution, you prioritize the metrics that are most important. Shape will recommend changes to the Current Daily Budgets of campaigns that are most likely to drive the best results based on priority.
Finally, “Weighted” distribution tells Budget Pacer to recommend increases or decreases to Current Daily Budgets that are proportional to the current budget rations you've set.
How do I make changes?
Regardless if you’re lowering or increasing your daily spend, the platform gives you the power to update the advertising platforms directly from Shape.
To update a campaign, select the checkbox and then click the pencil icon.