Consumption Logic – Speakol

Speakol introduces a new consumption logic, ensuring that your funds are automatically and intelligently allocated to your best-performing campaigns.

This article attempts to explain the new consumption logic, how it works, and why it is better for advertisers.

New Logic:

Once you, as an advertiser, Add Fund and charge your account. Your money is automatically deposited into your Available Balance. When you create new campaigns, your funds are not withdrawn and allocated to the ad sets you are running; instead, the budget or daily cap you set are dealt with as guidelines, and your funds are withdrawn as the campaign runs step by step.

Budget:

If you create ad sets with an end date, you can set a budget, which is the maximum amount of money you would like to spend during the campaign's duration. This amount needs to be equal to or less than your available balance.

Your Budget will be divide by the number of days you want to run your campaign. Let me give you an example to better illustrate this point:

So if you're going to spend $1000 in 10 days, that means that you will pay $100 a day for 10 days. The $100 is then spent based on a Dynamic Daily Cap.

So on Day 1, the system will try to spend $100. As soon as the amount is consumed, the ad set will pause and resume running on Day 2.
But say if the system could not spend the whole $100 on Day 1 and could only spend $80, then it will move the remaining $20 from the first day and add it to the $100 of the second day, meaning that on Day 2, the system will try to spend $120.
On Day 2, the system will spend the $120, but there might be overconsumption, and the ad set can spend around $150. In that case, the $30 overspend will be deducted from the budget of Day 4, so instead of trying to spend $100 on that day, the ad set will only try to spend $70.

Daily Cap:

If you have created ad sets with no end date, you can set a daily cap, which is the maximum amount of money you would like to spend per day. This amount needs to be equal to or less than your available balance.

Your Daily Cap is automatically spent as we go. Let me give you an example to better illustrate how this is calculated:

So if you set $100 as your daily cap, the system will try to spend the whole amount in the first hour. If the entire amount is successfully spent, the ad set will stop spending and will resume the next day again, trying to spend $100 per day until your available balance runs out.
If the ad set could only spend $50 in the first hour, your ad set will continue to run for 2 or 3 or as many hours as needed until it can consume the remaining $50.
If the day ends before the whole $100 is spent, you will only be charged for the spent amount because the ad set actively withdraws the funds as it goes.
On the second day, your ad set will have $100 as a daily cap to spend.

What happens if you have more than 1 running campaign at the same time.

Say, for instance, you have five running campaigns, with a daily cap of $100 each. The amount will be automatically withdrawn from your available balance as the day progresses.
But suppose your available balance is $320, which is not enough to cover the five campaigns' daily cap. In that case, the funds will be automatically allocated to the best-performing campaign (a campaign's rank and bid determine this).

Best Practices:

Maintain a substantial amount in your balance, to avoid any pause or halt of your performing campaigns.
Do not be tempted to cut costs with a small budget. If you try with a small amount, the algorithms will not be able to learn which platforms and tactics are achieving the best ROI. Moderate your spending over time once you have guaranteed effectiveness.
Time-limited campaigns, like Black Friday sales, flagship product launches, branding campaigns are different kinds of campaigns that require different kinds of budget optimization.

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