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Pacing strategies ensure that your monthly account budgets are spent optimally, aiming for 100% usage. However, some budgets might need extra attention. When you set up underspend mitigation during campaign creation, it helps correct underspend automatically within the month. If you're unsure about the best options for your campaigns, ask your Advertising Engineer.
Note: Underspend Mitigation is not available for Facebook budgets.
In This Article:
How Underspend Mitigation Works
How Underspend Mitigation Works
Starting on the 15th of the month, underspend mitigation applies one strategy each day to improve spending. Only active strategies are used. You can activate all or as many of the available strategies as you'd like. If the first strategy doesn't help, the system moves to the next one.
The strategies continue until the end of the month and through the first 7 days of the next month (This 7-day period gives you time to adjust your budget settings to avoid needing underspend mitigation every month). Afterward, one strategy per day turns off if the campaign is spending well. The strategies turn off in reverse order (Increase Geo Radius, Relax Ad Schedule, Broad Match Keywords, Remove Blocking Keywords, and then Bid Adjustment). Strategies stay off if spending is above 99.5% and underspend mitigation wasn't activated in the last 10 days.
When Underspend Mitigation Activates
When Underspend Mitigation Activates
Underspend mitigation activates:
On the 15th of the month
If a budget is pacing below 96%
The system also checks that the account is eligible for underspend mitigation:
The account is not in read-only mode.
The account is not on hold.
Budgets have not been exhausted.
The account has an account budget greater than $0.
The budget configuration has at least one underspending budget.
The budget wasn't created in the last 15 days.
An underspend protection type has been selected for the budget.
What Each Mitigation Strategy Does
What Each Mitigation Strategy Does
There are five available mitigation strategies in Backpack:
Bid Adjustment: Bids automatically increase by a specified percentage. Note: This works only for manual CPC, not smart bidding.
Remove Blocking Keywords: Negative keywords that block other keywords are removed.
Broad Match Keywords: Top 100 phrase and exact match keywords are transformed into broad match.
Relax Ad Schedules: Add additional hours to the existing schedule when underspend occurs. Note: If your Ad Schedule Strategy is set to 24/7 in blueprints, this strategy will not apply.
Go to Settings & Tools > Customer Info > Budget Management.
Click +Add New Budget Management.
Select Add Schedule Additional Late Hours on Underspend or Add Schedule Additional Early Hours on Underspend.
This will add an additional field (or fields) that you can use to add hours to your ad schedule in the morning or evening.
Increase Geo Radius: The targeted geographical area expands by a specified number of miles. Make sure clients and manufacturers approve this change.
How to Select Mitigation Strategies
How to Select Mitigation Strategies
To set underspend mitigation strategies for a budget:
Click on Manage in the top menu.
Select an account from the list on the left—and then a budget.
Click Budget Settings toward the right of the screen.
Scroll down in the budget pane to the Underspend Mitigation section.
Activate your desired strategies by setting the toggle to on or inputting a number in the field.
Scroll back up to the top of the budget pane and click Save.
Note: Active underspend mitigation tactics will be highlighted in yellow in the budget table in Manage. You'll also see a red flag icon in the budget column when underspend mitigation is active.
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