What is it?
The cross-channel budgeting module is a brand new feature introduced to our platform, and one of our first two modules. It allows users to create, manage, and track monthly and daily budgets across all linked ad platforms within their New Engen account — all in one place.
To be clear, when referring to a ‘budget’, here and throughout, it is referring to a target dollar amount of intended ad spend. This can be at the account or platform (e.g. Google Search, Bing Shopping, etc.) level, and defined by the user for the next 12 months or any day within those months. This module does not currently impact spend caps but may in the future.
Why are we doing this?
We are launching the budgeting module based on user research which supports that budget management is a complex and time-consuming process with high stakes and scrutiny. We learned that effective budget management could mean saving thousands of dollars of inefficient spend or capitalizing on thousands of efficient spend dollars that may have otherwise been left on the table. We heard this from PMT, SaaS partners, and prospects alike. Based on this research, we are implementing a solution to help marketers achieve efficient and scalable ad performance with a new budgeting module.
What is new?
- Our newest module
Users can access this module from the ‘Budgeting’ tile on the home page.
- Create, update, and visualize monthly and daily budgets
Via the marketing plan page, this module allows users to create and update monthly and daily budgets at the account or ad platform level, which are then visually-represented on the budgeting page for clear and consolidated tracking.
- Systematically track spend vs. budgets
This module allows users to automatically track spend and efficiency data, for a given month and on a daily basis, relative to budgets set. Budget vs. spend variances and target vs. actual efficiency will be updated on a recurring basis — removing the effort of having to continuously and manually retrieve spend and efficiency data from disparate native ad platforms.
- Relevant efficiency metrics to make decisions
This module allows users to view associated efficiency metrics (i.e. CPA or ROAS) for this spend in order to get a fuller picture into the implications of spend vs. budget variances and take appropriate actions as needed.
- Create, update, and visualize daily budget adjustments
This module allows users to create and update daily budget adjustments within a specific month in order to customize budgets specifically for their business. Daily budget adjustments can be made to account for promotions, holidays, product launches, shipping cutoffs, seasonality, day-of-week fluctuations, campaign cycles, and other factors that impact budgets across ad platforms.
- Check budget and spend KPIs
This module allows users to get a quick "health check" for account spend vs. budget via simple and clear KPIs, including: total monthly budget, total month-to-date spend, total monthly budget remaining, average daily spend for the month, and average daily budget remaining for the month.
- Visual indicators of spend vs. budget pacing
This module allows users to clearly monitor 'on pace', 'over pace', and 'over budget' spend statuses, relative to ad platform-level budgets so they can quickly how their actual spend is trending relative to intended budgets set for various ad platforms.
- Auto-calculating spend vs. budget pacing metrics
This module allows users to have quick reference to helpful systematically-generated metrics, including: monthly account and ad platform budgets, projected ad platform spend, spend vs. budget variance (by percentage), average daily month-to-date spend, and average daily budget remaining.
- Do budgets I create and update within the budgeting module impact spend caps, bids, campaign statuses, etc?
No, the first version if the budgeting module is purely a reporting and monitoring tool that allows you to create, manage, and track budgets across your account and ad platforms. It does not impact any campaign management, spend caps, or bidding functionality within our system in the immediate. However, it may in the future.
- How is ‘budget vs. spend variance’ calculated?
'Budget vs. spend variance' is calculated by subtracting monthly budget from projected spend, and dividing by the monthly budget. In other words, this gives users the percentage difference between projected spend vs. the intended budget a user set for the account or ad platform for a given month.
- If I make a daily budget adjustment, what happens to other budgets in the same month?
If a budget adjustment is made to a specific day within a month, budgets for all days between the current day and end of the month (including all days proceeding and following the adjusted day) will auto-balanced relative to the increased or decreased daily budget. As an example, if you increase a daily budget by $2000, that same $2000 will be decreased evenly across all proceeding and following days between the current day and the end of the month — such that, the monthly budget will remain the same.
- What are the definition of 'on pace', 'over pace', and 'over budget' in the spend vs. budget pacing chart?
Spend for a specific ad platform is considered to be 'on pace' if the current month-to-date spend is less than or equal to the current month-to-date expected spend based on budget set. Spend for a specific ad platform is considered to be 'over pace' if the current month-to-date spend is greater than the current month-to-date expected spend based on budget set. Spend for a specific ad platform is considered to be 'over budget' if the current month-to-date spend is greater than the current month's budget.
- By what amount does month-to-date spend need to exceed the current month's expected month-to-date spend (based on budget set) to be flagged as ‘over pace’?
If the month-to-date spend exceeds the current month's expected month-to-date spend (based on budget set) by even $0.01, it is flagged as 'over pace'.
- What native ad platforms are covered in the first version of the budgeting module?
The following native ad platforms are supported in the budgeting module MVP: Google Search, Bing Search, Google Shopping, Bing Shopping, Google Display, and Facebook.