Effortlessly allocate budgets to ad campaigns, reducing errors and the required cost per action.

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Sprinklr Marketing (Ads)’s Smart Budget Allocation eliminates the guesswork and uncertainty that comes with manually allocating budgets. Powered by an AI-based algorithm, Smart Budget provides performance prediction, automatic budget distribution, and customizable optimization goal metrics. It alleviates the manual process of campaign management, saving time and maximizing performance.

Smart Budget is designed to minimize the campaign CPA (cost per action). The feature continuously reallocates the campaign budget between the Ad Sets so that the expected number of future conversions is maximized and the CPA level is minimized.

Value of Smart Budget

• Increase Return on Ad Spend: Automatically redistribute Paid Initiative or Ad Set budgets to top-performing entities to drive increased Return on Ad Spend (ROAS).
   

• Customizable Business Goals: Set any optimization goal metric, including custom metrics and third-party metrics from Google Display & Video 360, Google Analytics, or Adobe Analytics.
   

• Automate Budget Reallocation: Eliminate the manual, user-driven budget inputs, and replace them with AI-powered optimization decisions based on real-time performance. Smart Budget’s machine learning technology continuously improves performance over time.
   

• Multi-Channel Functionality: Manage campaigns of multiple channels including Facebook, Twitter, LinkedIn, Pinterest, Snapchat, and LINE, and reallocate budgets across channel-specific paid initiatives having different objectives.
   

• Forecast Campaign Performance: Preview expected cost savings before applying Smart Budget.
   

• Use across Multiple Campaigns Simultaneously: Facebook Budget Optimization can be used only on one campaign, allocating budget across its ad sets based on performance. Sprinklr Smart Budget can allocate budget across campaigns as well as ad sets belonging to different campaigns having the same or different objectives.
   

• Optimization Goal: You can set any optimization goal for Smart Budget, independent of the campaign objective.
   

• Audit Trail: Unlike Facebook, Sprinklr Audit Trail allows you to trace the changes that are made daily so that you have an audit trail to allow your team to calculate the savings and understand which factors drove performance.

How Smart Budget works

Smart Budget dynamically shifts budgets between Paid Initiatives and Ad Sets based upon real-time performance using Reinforcement Learning, a subset of AI, to systematically increase return on ad spend.

If all Ad Sets have plenty of conversions, then most of the budget will be allocated to the Ad Set having the lowest CPA. The Smart Budget makes the decisions based on the previous day’s data; however, this data duration can be configured to consider a longer duration.

To guarantee continuous exploration, a small proportion of the campaign budget is allocated evenly between Ad Sets. Sprinklr Smart Budget maximizes the number of conversions in a campaign by reallocating the budget between the delivering Ad Sets at midnight every night. The feature works best in campaigns where the budget is a limiting factor, i.e., most of the Ad Sets are spending their daily budgets.

Smart Budget can allocate budget between multiple campaigns. Allocation still happens on the Ad Set level, that is, the current budget of a pool is allocated between all the Ad Sets in the pool. This capability is especially useful for multiple campaigns with the same type and objective, as they can be optimized towards the same conversion goal.

How Smart Budget uses reinforcement learning

Smart Budget uses Reinforcement Learning to take actions that maximize cumulative reward.

Agent - Sprinklr Smart Budget Algorithm
Environment - Channel’s ad delivery system
Action - An optimization made by the algorithm
Rewards - Lower CPA

As the action is made on the environment, a new "state” is created. This allows the algorithm to continue to learn and optimize towards the maximum reward.

Applying reinforcement learning to budget management

Recommended Smart Budget application

Smart Budget Allocation Video Overview

Learn how you can eliminate the guesswork and uncertainty that comes with manually allocating budgets using Sprinklr's Smart Budget Allocation in Strategy Groups.