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Reach Target Monthly Spend - Reallocation
Reach Target Monthly Spend - Reallocation
Geetanjali Tyagi avatar
Written by Geetanjali Tyagi
Updated over 2 years ago

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Reallocation Methods

There are two ways of calculating what the new daily budget should be: evenly distributed or backloaded.

Even distribution

This method simply figures out how much the budget remains for the month and how many days remain, then divides the former by the latter.

Evenly with Increases For High Potential Days of the Week

Shares the budget evenly between the remaining days but will bump the budget higher if today is a day of the week that has typically seen higher click volume.

Back-Loaded Reallocation

In this method, a larger portion of the budget is kept for the end of the month. If you know you’ll be running a big promotion toward the end of the budget period, this can be a good method to preserve the budget for a time when you expect your ads to perform better in terms of key metrics like CPA or ROAS.

Based on Day of Week Potential

The budget is allocated on the basis of the potential to spend on every day of the week.

What is the difference between 'Evenly', 'Evenly with Increases For High Potential Days of the Week', and 'Based on Day of Week Potential'?

  • 'Evenly' takes the remaining budget and divides it evenly between all remaining days.

  • 'Evenly with Increases For High Potential Days of the Week' sets at least the same budget as 'Evenly' but will increase the budget if it thinks today is a day of the week with the potential to get more volume.

  • 'Based on Day of Week Potential' splits the remaining budget based on day of week patterns and can both increase or decrease the budget compared to 'Evenly'.

'Evenly with Increases For High Potential Days of the Week' is the most aggressive method of the three.

You can read more about how this script can help you in this blog post.

Front-Loaded Reallocation

In this example, we have a month that is 30 days and a budget of $100 for that month. We will assume in this example that you spend the full amount of the daily budget every day. Here’s what budgets the script will set:

  • Day 1.0 of 30.0, new budget 6.451612903225806, cost so far 0.0

  • Day 2.0 of 30.0, new budget 6.236559139784946, cost so far 6.451612903225806

  • Day 3.0 of 30.0, new budget 6.021505376344086, cost so far 12.688172043010752

  • Day 4.0 of 30.0, new budget 5.806451612903225, cost so far 18.70967741935484

  • Day 5.0 of 30.0, new budget 5.591397849462366, cost so far 24.516129032258064

  • Day 6.0 of 30.0, new budget 5.376344086021505, cost so far 30.107526881720432

  • Day 7.0 of 30.0, new budget 5.161290322580645, cost so far 35.483870967741936

  • Day 8.0 of 30.0, new budget 4.946236559139785, cost so far 40.645161290322584

  • Day 9.0 of 30.0, new budget 4.731182795698925, cost so far 45.59139784946237

  • Day 10.0 of 30.0, new budget 4.516129032258064, cost so far 50.322580645161295

  • Day 11.0 of 30.0, new budget 4.301075268817204, cost so far 54.83870967741936

  • Day 12.0 of 30.0, new budget 4.086021505376344, cost so far 59.13978494623656

  • Day 13.0 of 30.0, new budget 3.870967741935484, cost so far 63.225806451612904

  • Day 14.0 of 30.0, new budget 3.655913978494624, cost so far 67.09677419354838

  • Day 15.0 of 30.0, new budget 3.440860215053764, cost so far 70.75268817204301

  • Day 16.0 of 30.0, new budget 3.225806451612904, cost so far 74.19354838709677

  • Day 17.0 of 30.0, new budget 3.0107526881720448, cost so far 77.41935483870967

  • Day 18.0 of 30.0, new budget 2.795698924731184, cost so far 80.43010752688171

  • Day 19.0 of 30.0, new budget 2.5806451612903234, cost so far 83.2258064516129

  • Day 20.0 of 30.0, new budget 2.365591397849464, cost so far 85.80645161290322

  • Day 21.0 of 30.0, new budget 2.1505376344086047, cost so far 88.17204301075267

  • Day 22.0 of 30.0, new budget 1.9354838709677438, cost so far 90.32258064516128

  • Day 23.0 of 30.0, new budget 1.7204301075268833, cost so far 92.25806451612902

  • Day 24.0 of 30.0, new budget 1.5053763440860237, cost so far 93.9784946236559

  • Day 25.0 of 30.0, new budget 1.2903225806451653, cost so far 95.48387096774192

  • Day 26.0 of 30.0, new budget 1.0752688172043037, cost so far 96.77419354838709

  • Day 27.0 of 30.0, new budget 0.860215053763443, cost so far 97.84946236559139

  • Day 28.0 of 30.0, new budget 0.6451612903225836, cost so far 98.70967741935483

  • Day 29.0 of 30.0, new budget 0.43010752688172715, cost so far 99.35483870967741

  • Day 30.0 of 30.0, new budget 0.21505376344086358, cost so far 99.78494623655914

  • Day 31.0 of 30.0, new budget 0.0, cost so far 100.0

Back-Loaded Reallocation

In this example, we have a month that is 30 days and a budget of $100 for that month. We will assume in this example that you spend the full amount of the daily budget every day. Here’s what budgets the script will set:

  • Day 1.0 of 30.0, new budget 1.694915254237288, cost so far 0.0

  • Day 2.0 of 30.0, new budget 1.7246506095747844, cost so far 1.694915254237288

  • Day 3.0 of 30.0, new budget 1.7560078933852352, cost so far 3.4195658638120725

  • Day 4.0 of 30.0, new budget 1.78914011778873, cost so far 5.1755737571973075

  • Day 5.0 of 30.0, new budget 1.8242212965689013, cost so far 6.964713874986037

  • Day 6.0 of 30.0, new budget 1.8614503026213278, cost so far 8.788935171554938

  • Day 7.0 of 30.0, new budget 1.9010556282090156, cost so far 10.650385474176266

  • Day 8.0 of 30.0, new budget 1.9433013088358826, cost so far 12.551441102385281

  • Day 9.0 of 30.0, new budget 1.9884943625297402, cost so far 14.494742411221164

  • Day 10.0 of 30.0, new budget 2.036994225030466, cost so far 16.483236773750903

  • Day 11.0 of 30.0, new budget 2.089224846185093, cost so far 18.52023099878137

  • Day 12.0 of 30.0, new budget 2.145690382568474, cost so far 20.60945584496646

  • Day 13.0 of 30.0, new budget 2.2069958220704304, cost so far 22.755146227534937

  • Day 14.0 of 30.0, new budget 2.2738744833452915, cost so far 24.96214204960537

  • Day 15.0 of 30.0, new budget 2.347225273130624, cost so far 27.23601653295066

  • Day 16.0 of 30.0, new budget 2.42816407565237, cost so far 29.583241806081283

  • Day 17.0 of 30.0, new budget 2.518096078454309, cost so far 32.01140588173365

  • Day 18.0 of 30.0, new budget 2.6188199215924817, cost so far 34.52950196018796

  • Day 19.0 of 30.0, new budget 2.732681657313894, cost so far 37.14832188178044

  • Day 20.0 of 30.0, new budget 2.862809355281222, cost so far 39.88100353909434

  • Day 21.0 of 30.0, new budget 3.0134835318749706, cost so far 42.74381289437556

  • Day 22.0 of 30.0, new budget 3.1907472690440866, cost so far 45.75729642625053

  • Day 23.0 of 30.0, new budget 3.4034637536470256, cost so far 48.948043695294615

  • Day 24.0 of 30.0, new budget 3.66526865777372, cost so far 52.35150744894164

  • Day 25.0 of 30.0, new budget 3.9984748993895125, cost so far 56.01677610671536

  • Day 26.0 of 30.0, new budget 4.442749888210569, cost so far 60.015251006104876

  • Day 27.0 of 30.0, new budget 5.077428443669222, cost so far 64.45800089431545

  • Day 28.0 of 30.0, new budget 6.092914132403067, cost so far 69.53542933798467

  • Day 29.0 of 30.0, new budget 8.123885509870755, cost so far 75.62834347038773

  • Day 30.0 of 30.0, new budget 16.247771019741506, cost so far 83.7522289802585

  • Day 31.0 of 30.0, new budget 0.0, cost so far 100.0

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