The Spend Ratio determines how the campaign budget is distributed across various targeting dimensions. When advertisers set the spend ratio for creatives (available now), locations, devices or inventory (coming soon), the platform allocates the budget accordingly, ensuring that each dimension receives its designated proportion of the total campaign budget.
How does the Spend Ratio work?
The spend Ratio works by defining the budget allocation against each targeting dimension in the Bid Model.
For instance, you may have noticed from previous campaigns that more traffic to your website is attributed to mobile/tablet than to desktop. Due to that performance insight, you may want to designate 70% of the budget to Mobile/Tablet, 20% to Desktop, and 10% to CTV.
Here’s a table representing this scenario.
Devices | Spend Ratio | Spend Ratio Method |
Mobile/Tablet | 70% | STRICT |
Desktop | 20% | STRICT |
CTV | 10% | STRICT |
Spend Ratio Method determines how strictly you want to follow the budget allocation. There are two available methods:
STRICT - In this method, the budget allocation is firm. In other words, the campaign will spend to its allocated budget unless it is unable to for any reason. In that case, the campaign will underspend in total.
In the above scenario, assume that the campaign is only able to fill 60% of the budget on mobile/tablet placements. Overall, the campaign will spend90% of its total budget: 60% on Mobile/Tablet, 20% on Desktop, and 10% on CTV.
Strict Spend Ratios:
Do not incorporate Priority Levels
Must equal 100% across all allocated dimensions
Dimension values with no designated spend ratio are counted in “others.” (See zip code example below.)
FLEXIBLE - In this method, the allocated budget is treated as the maximum budget allocation, and its requirement to fill to the maximum allocation is flexible.. In other words, if the campaign is unable to spend to the maximum allocation for any reason, spend will reallocate to lower priority items with the goal of the campaign spending in full.
For example, assume a campaign bid model with the below-mentioned scenario.
Locations: Zip Codes | Priority | Spend Ratio | Flexibility |
Zip1 | 1 | 100% | Flexible |
Zip2 | 2 | 80% | Flexible |
Zip3 | 3 | 70% | Flexible |
Others | 4 | 100% | Flexible |
Here, the Flexible spend ratio is applied to Zip Codes. In the above example, the platform can serve a budget of up to 100% on Zip1, 80% on Zip2, and 70% on Zip3.
Priority is mandatory when the Spend Ratio method is Flexible. The platform will begin serving up to the first priority item’s allocated spend. If the campaign is not pacing to its designated spend level, it will begin serving to priority 2.
Other Possible Outcomes:
All dimensions (Zip1, Zip2, Zip3, Others) eventually begin serving because none of the priorities were pacing as expected
The platform serves the entire campaign only to Zip1 (priority 1) if the pacing is good. Other dimension values, such as Zip2 and Zip3, would never get served.
A portion of the ads are served to Zip1 (priority 1), before moving onto Zip2 (priority 2), where the rest of the budget is served. No budget is served to Zip3 and others because the campaign has spent in full
Most or all of the ad serving happens in the “Others” zip code group if priorities 1 - 3 are not filling.
Flexible Spend Ratios:
Must have a priority assigned
If a priority is not assigned a dimension value, it is counted in “Others” and is calculated up to 100%
Must equal at least 100% and may exceed 100% across allocated dimensions
For more information on setting a spend ratio, see How do I Apply a Spend Ratio?
FAQ
Is setting a Spend Ratio mandatory?
No, it is optional.
Can I edit my spend ratio after I have set it?
You may add, change, or delete the spend ratio as many times as you want for any campaign (Running, Draft, Pending, Paused, Rejected). However, you can not set the spend ratio to lower than the amount the campaign has already spent.
The campaign must be in Running, Draft, Pending, Paused or Rejected status in order to edit spend ratio. Expired or Deleted campaigns cannot be edited.
On which dimensions can I apply a spend ratio?
Currently, spend ratio is available for creative versions. You will be able to apply it to device, inventory and location in a future release.
What is the “Others” row that appears in the bid model?
The “Others” row is a group of values that represents all the rest of the items in the dimension that do not have a spend ratio applied to them.
Can I remove the spend ratio from the campaign once it has already started spending?
Yes, once you remove any item from the bid model after it has started running. the rest of the items will stay intact and the removed removed item will become part of the “Others” bucket.