Budget suggestions - Explanation to the table
How to calculate the values on the budget suggestion page:
For a better understanding of the table and chart this article goes into detail regarding the various cells and gives a calculation example
Looking at the table we have the following column when looking at a budget suggestion of a specific campaign:
Chart: We can extend the chart as on the screenshot by simply clicking in to it and can look at the diagram showing Budget Coverage, Cost, Budget, Conversions, ACoS/CRR of the specific campaign.
Suggested/Current: the daily budget that is suggested to be set at and the daily budget at the moment that is set in the advertising platform
Estimated Optional Spending:
The spending amount represents what we consider "optimal" for achieving the campaign's goal. However, the budget suggestion is slightly higher than this optimal spending. This is because daily costs can fluctuate, and we want to account for these variations. By setting a slightly higher budget, depending on how volatile the campaign's spend is, we ensure that the budget never limits the campaign's performance.
Average Cost of the last 7 days: Average spending of the campaign within the last 7 days
Calculated: (105.59 + 85.75 + 83.50 + 75.29 + 116.33 + 107.02 + 120.39)/7 = 99.12
Date | 09.12 | 10.12 | 11.12 | 12.12 | 13.12 | 14.12 | 15.12 |
Cost/day | €105.59 | €85.75 | €83.50 | €75.29 | €116.33 | € 107.02 | € 120.39 |
Average Coverage/day | 58.33% | 70.83% | 70.83% | 79.17% | 50% | 54.17% | 50% |
Average Coverage last 7 days:
Calculated: (58.33% + 70.83% + 70.83% + 79.17% +50% + 54.17% + 50%)/7= 61.90%
Budget Usage within the last 7 days:(cost per day of the last 7 days)/( budget of the last 7 days ) *100
= (105.59 + 85.75 + 83.50+ 75.29 + 116.33 + 107.02 + 120.39) /( 7* 66.56)*100 =148.925%
Note:
Budget Usage last 7 days: Not visible in the chart. The average percentage of the budget that was spent in the last 7 days.
It is possible for Amazon – and therefore Adspert – to exceed the specified daily budget of a campaign on a single day (by up to 100%). However, this occurs as part of Amazon's standard budgeting strategy: the daily budget is managed over the course of a month rather than being strictly adhered to on a daily basis.
Ultimately, the total monthly spend will not exceed the daily budget multiplied by the number of days in the month (30 or 31 days).
This is why, in the table, you may see costs exceeding the daily budget on certain days and a budget usage of over 100%.
For more information on budget recommendations, watch this video.