What is Ad Spend?

To run a campaign with AdRoll you need to decide on a monthly budget that we will then break into a daily budget. Your daily budget tells us how much, on average, you are willing to spend on all ad impressions each day and/or each month. Spend accounts for how much of your budget we use to auction for your ad impressions to reach your target audience.

Is there a budget requirement?

In order for your campaigns to be effective, there is a minimum ad spend of $175/month (roughly $5/day) per campaign. For example, if you're currently running a prospecting campaign and would like to add a retargeting campaign, it would be an additional $175/month.

How to Determine Ad Budget

Retargeting Campaign:

Retargeting ads are served to customers who have previously visited your website. To determine a budget, we recommend logging into your shopping platform or Google Analytics to find your monthly unique visitors, or MUV. Remember that you're looking at unique visitors, NOT total visitors, as a visitor should only be counted once to determine your budget. Here is how to find MUV in Google Analytics + Shopify.

In a slower season, it is best to reach 30-50% of your audience. In a busier season, we recommend reaching 60-80% of your audience. Using your MUV, you can determine your budget using the chart provided below.

Site Visitors

35% Reach

50% Reach

75% Reach

5,000

$175

$250

$375

12,000

$425

$600

$900

20,000

$700

$1000

$1500

Prospecting Campaign:

Prospecting campaigns, otherwise known as lookalike campaigns, are purely intended to drive top-of-funnel traffic to your site. Prospecting ads target customers who have never come in contact with your brand and have never purchased from you before. Depending on your goals as a business and what actions you are taking outside of a prospecting campaign, we recommend the following calculation (based on an average cost per click of $0.50 (this can be higher or lower depending on individual factors). The number of new visitors that you'd like to drive to your site will determine the budget that you're comfortable investing in prospecting ads.

Calculation: Ad Spend (dollar amount) x CPC (cost per click) = NV (number of new visitors)

  • 350 new site visitors = $175 in ad spend ($175 ad spend x $0.50 CPC (approximately 350 new visitors)

  • 1,000 new site visitors = $500 in ad spend ($500 ad spend x $0.50 CPC = (approximately 1,000 new visitors)

  • 2,000 new site visitors = $1,000 in ad spend ($1,000 ad spend x $0.50 CPC = (approximately 2,000 new visitors)

How to ensure your ad spend is best optimized:

  • The number of people that you're targeting (size of your audience): Targeting large audiences increases your advertising reach and helps you get in front of more potential customers. If you're goal is to increase your reach, you should consider increasing your budget.

  • The variety of ad sizes: Uploading multiple ad units to your web campaigns will secure premium inventory space. AdRoll recommends a minimum of three different ad sizes (300×250, 728×90, and 160×600 are the most popular). To ensure that your ads are optimized, we recommend launching one of each available ad size for the best performance. Duplicate ad sizes can sometimes hinder performance, so consider only using the design that's performing best.

  • The amount you bid for each ad placement: AdRoll has algorithms that evaluate each person based on their level of intent, the inventory available, and seasonal factors. As your spend increases, more of these customers can be reached.

Do I need to worry about overspending?

You do not have to worry about overspending. While your daily spend can vary on any given day, your total spend will not exceed your set monthly budget.

Can I spend more than the minimum?

Absolutely! $175 is just the minimum spend allowed. Increasing your ad spend gives AdRoll more budget to expand your reach. If you're interested in increasing your budget and how that can positively impact your campaigns, reach out to us at help@springbot.com!

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