Why ABO?
The automatic Budget optimization feature will eliminate the manual work of increasing and decreasing the budget automatically based on the campaign performance. It can help us in spending the budgets on the right campaign and if rules are set right will improve the overall ROAS in the longer run.
Facebook:
ABO should be used by everyone irrespective of the spending. The following are some of the best practices of ABO:
Budget of the client | Frequency | Budget change based on | Rule |
Less than 3 lakhs | Weekly | Last 7 days ROAS | Increase budgets - 10% if ROAS is at A(x). |
3 lakhs to 7 lakhs | Bi/Tri-Weekly | Last 7 days ROAS | Increase budgets - 15% if ROAS is at A(x). |
Above 7 lakhs | Tri-Weekly / Daily | Last 3/1 day ROAS | Increase budgets - 20% if ROAS is at A(x). |
Examples:
Client 1 (Health and Wellness ) :
Budget - Above 7 lakh
Frequency - Daily
Budget change based on - Last 1-day ROAS
Rule - Increase by 20% if ROAS is above 2x and decrease if the ROAS is below 1.3x
Client 2 (Health and Wellness):
Budget - 3 lakhs to 7 lakhs
Frequency - Tri-weekly
Budget change based on - Last 7 days ROAS
Rule - Increase by 15% if ROAS is above 2x and decrease if the ROAS is below 1x.
Client 3 (Health and Wellness ) : (Scale-up high)
Budget - Less than 3 lakhs, scaled up to 3 - 5 Lakhs
Frequency - Daily
Budget Change based on - Last 3 days ROAS
Expected ROAS - 2.5X
Rule - Increase by 18% if ROAS is above 2X and decrease 10% if ROAS is below 1X.
Google ABO:
This Automated Budget Optimization Feature allows us to automatically update the performance max campaign budgets at the chosen frequency depending upon the ROAS and the configuration set.
Points to note for Configuring Google ABO:
Ensure the Performance Max campaign’s budget spend % is more than 70%
In Increase Case, Set the Maximum budget limit as 1.5-2 times the current budget/Target budget
In Decrease Case, Ensure the Minimum budget limit is not equal/closer to the current campaign budget.
ABO won’t run if the budget spend % falls under 50%. Kindly reduce Troas manually in this case.
In the increase case, can set ROAS little less than the actual target ROAS given Late attribution in Google.
Example-
Budget - 3 lakhs to 9 lakhs
Frequency - Daily
Lookback window - Last 7 Days ROAS
Expected ROAS - 5.5x
Rule - Increase budget by 20% if the ROAS is more than 4.3x and Decrease budget by 10% if the ROAS is less than 2.9x.
How to set up ABO?
Go to the adyogi dashboard > Automations section > Budget optimisation > Scroll down to facebook/google budget optimisation and turn the toggle on for starting the setup.