Getting Started With Budgets

Contents

Overview

Cross-channel budgeting is a difficult process to plan, create, monitor and optimize. Budgets by Jove makes it easy to create and compare planned and actual advertising budgets across channels, objectives, and tags all from one central location.

Key Concepts & Components

Key Terms

  • Budget: The total dollar amount input when creating the budget
  • Spend: Sum of marketing spend through yesterday (inclusive of any manually added data)
  • Budget Remaining: Total Budget - Spend
  • Days Remaining: This is the number of days remaining in the budget, including today's date
  • Avg Daily Spend: Total Spend / # of Days Past
  • Avg Daily Budget Remaining: Total Budget Remaining / # of Days Remaining

KPI: Key Performance Metrics. Selection of a KPI informs our "Target vs Actual" display in Budgets. Currently supported KPI metrics include: CPA, CPC, CPM and ROAS

  • CPA:  Cost per Acquisition [Total Spend / # of Campaign Optimized Conversions]
  • CPC: Cost per Click [Total Spend / # of Clicks]
  • CPM: Cost per Thousand Impressions [Total Spend / (Impressions/1000)]
  • ROAS: Return on Ad Spend [Total Revenue / Total Spend]

Budget Structure: The structure on which the budget will be created. This can be:

  • Platform + Channel: Google Search, Google Shopping, Google Display, Bing Search, Bing Shopping, Facebook Social
  • Channel: Search, Shopping, Display, Social
  • Platform: Google, Bing, Facebook
  • Tags: Campaign tags can be created and assigned in Tags by Jove

Navigating Budgets Dashboard

Upon entering Budgets for the first time, you will be prompted to Create a New Budget. Once that first budget is built, you will be redirected to our Budget dashboard.

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Navigating Between Budgets

Once multiple budgets have been created, the drop-down in the top left-hand corner of the budget dashboard enables you to navigate between budgets. 

Top Line Metrics 

Your aggregate, top-line metrics enable you to quickly assess total budget performance and determine if adjustments are needed to keep your budget on track.

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Budget vs Spend

This view enables you to quickly understand how individual line-items are pacing and contributing to your total budget performance. Understanding total line-item spend vs budgeted line-item spend allows you to determine where budget adjustments are needed in order to keep budgeted spend on track. 

  • Understanding Pacing Performance
    • Average Daily Spend is compared against Average Daily Budget Remaining to calculate how your total and individual line-item spend is pacing against its set budget.
    • Understanding how you're pacing against budget is critical to determine if adjustments are needed to keep spend on track. 
  • Conditionally Formatted Pacing Performance 
    • Under Budget (blue)
      • Average Daily Spend is at least 5.1% lower than Average Daily Budget Remaining 
    • At Budget (orange)
      • Average Daily Spend is within 5% of Average Daily Budget Remaining 
    • Over Budget (red)
      • Average Daily Spend is at least 5.1% greater than Average Daily Budget Remaining

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Target vs Actual

This view enables users to understand individual line-item KPIs are performing against their set KPI target. Similar to Spend vs Budget performance, KPI performance falls into one of three categories:

  • Below Target (blue)
    • Actual KPI performance is at least 5.1% lower than KPI target
  • At Target (orange)
    • Actual KPI performance is within 5% of KPI target
  • Over Target (red)
    • Actual KPI performance is at least 5.1% greater than KPI target

For example, with a CPA target of $2.5 and an actual performance of $17.46, the performance variance would be +598.4%, leading users to understand that they are well above target and should look into optimizing their current campaigns. 

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Daily Budget Pacing

This chart allows users to view their Budget vs. their Actual Spend. In which case the Over Budget is shown in red. If a daily budget has been adjusted, the bar will appear are black. 

Daily budgets can be adjust if, for example, one specific day has a promotion and is budgeted at 3.5K spend in Google Search, as opposed to the usual 3K. Once this change has been done, the overall budget will also adjust itself to take into consideration the changes.

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FAQ

  1. How Do I Create a Daily Budget?
  2. How Do I Edit a Daily Budget?
  3. How Do I Add Data to my Budget?
  4. How Do I Adjust My Daily Budget?

Related Features

  • Tags
  • Reports
  • Insights
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