The new Madgicx tool, the Autonomous Budget Optimizer (ABO), is a smart and agile solution for all account types, that makes Facebook budget optimization into an automated, and autonomous process. It will revolutionize the way you manage and scale your account.
The ABO can help you optimize your account budgets in real time: you only have to tune this powerful algorithm once, and then it sets off adjusting your account budgets autonomously, making the best decisions for your account.
This set of algorithms represents your unique account structure: it uses your most important kpis and business priorities, and changes your budget according to a schedule that you set, autonomously.
You set the ABO to work differently for the different funnel stages: you can consider different time frames and different KPIs, and weigh the metrics differently for each funnel stage. You can also change the frequency of the checks and budget changes: for example, if your acquisition activity fluctuates quickly and your retention tends to be more stable.
All you need to do is to click Create Strategy- and insert your KPIs and preferences. You can create multiple strategies: for different accounts or for divisions within the same business, or separate strategies for weekdays and weekends. You can also see the strategy history, and how it changed the budget.
The ABO is the next step in Madgicx becoming an autonomous ad buying machine. Try it out and see your account performance soar.
The Autonomous Budget Optimizer Dashboard is the area where you can monitor your strategies and the changes they make on your account. You can also use the Dashboard to evaluate your strategies, and create new strategies.
This graph lets you compare the performance of different funnel stages or assets, managed autonomously or manually: so you can easily see whether your strategies are effective or not, and how they improve your performance.
You can change the graph metrics and time frame, to get different insights: you can also use the menu on the right to select the assets or strategies that you want to analyze.
Create new strategy: would move you to the create strategy menu
For each strategy, you can find:
This graph shows the performance trends over the last 5 weeks.
This indicates where on the spend range your strategy currently stays: near the minimum or the maximum. The spendometer is in different colors according to the asset’s funnel stage.
Yesterday, Spend so far today, and Next budget change
You can click on each strategy to expand more detailed information on each ad set, divided by funnel stage. For each funnel stage and ad set that uses this strategy, you can find:
Divided to top, good, medium, and worst.
This graph shows the individual ad set performance over the last 5 weeks.
The amount spent on this ad set in the time frame that you have set.
The average frequency for this ad set
The budget for today
The minimum and maximum amounts for tomorrow’s budget.
Select either the assets or the strategies that you’d like to see, and select the metric you’d like to sort assets by. See how your budget is predicted to change on the strategy, funnel stage, campaign, and ad set levels.
The Autonomous Budget Optimizer is the peak of Madgicx technology: a machine that can autonomously manage your account budget and optimize them based on your preferences.
Follow these steps to create an autonomous budget strategy for your account. The possibilities are endless: You can create a master strategy, a week/ weekend strategy, an aggressive or a balanced strategy.
Click on Create Strategy, then choose a name for your strategy.
Expand Asset Selection to select the assets and funnel stages you want to apply the strategy to.
You can choose a name filter to choose which assets the SBO will work on, Click on the dropdown to select all ad sets to apply the strategy to the entire account.
Expand Step 2: Autonomous budget scaling on the funnel stage level. In this stage, you define the macro strategy: decide on the metrics and strategy for each funnel stage.
The algorithm will check for the condition, using the metric that you provide, and will scale the budget up and down based on the values you select.
Each color represents a different funnel stage. This allows you to control your budget allocation and keep it in the right structure: 60-70% acquisition, 20% retargeting and 10% retention.
At this step, you need to set:
what will the strategy measure, and what data window will it take into account?
Choose the metric that best indicates performance: for most eComm accounts that would be ROAS, but you can choose any metric and time frame that best represents your performance.
For ecommerce accounts we recommend purchase ROAS- in acquisition we care about the short term, so last 14 days including today.
This is the condition for your strategy, or what values will cause it to change the budget.
The values here will populate automatically, but you can adjust them as you’d like. Set your different budget tiers: you can click the + sign to add more levels.
We recommend that you set your Break-even ROAS as the minimum daily budget for all funnel stages. It’s recommended to have at least 4-5 ranges (2-3 additional) for the Acquisition funnel stage: but of course you can add more for more control over your spending. Your ranges for retargeting and retention can be less detailed.
Set how often the budget can change.
We recommend to set the frequency at once a day for prospecting, and once in three days for all other stages.
How high can the frequency get? This is a really important tool because Facebook does not have this option.
Normally you wouldn’t need to set a frequency limit for Aqcuisition as these audiences are so large: but we recommend setting one for retargeting and retention, and also reengagment if needed.
When you’re done, expand step 3: Smart budget allocation between ad sets and campaigns within each funnel stage. Smart budget allocation allows you to look at different metrics and different time frames. The strategies work for both ABO and CBO campaigns.
Your metrics and priorities also change for the different funnel stages: for example, you might care about traffic more in the prospecting phase, as it feeds into the retargeting and retention.
Decide which metrics you want to prioritize: from your first to your fifth most important metrics.
Decide what weight different time frames hold for each funnel stage: What time frames do you care about the most and the least.
Tip: give the most weight to the time frame that has the highest performance.
How often should the budget change? Instead of an overall change this strategy changes the budget inside the funnel stage ‘pool’.
We recommend 1 day for acquisition prospecting, 3 days for reengagement, and 7 days for retargeting and retention.
The next stage shows all the adsets you’ve chosen to apply the strategy to, and how much will the algorithm change the activity of every one of them.
In the next hour, it will change all the budget (since we want to avoid rate limit issues): give it about a week to run autonomously, and see the effect it has on your account. It will save you a lot of time managing your account: one of the most difficult media buying tasks.
That’s it! Takes a minute to tune, but worth it after all.