XPO lets you control campaign budget (as granular as per minute) and the speed at which the budget is spent, i.e. pacing. The pacing can be set using a fixed schedule or using a "smarter" dynamic pacing, where the rate of bid delivery of ad groups is flexibly adjusted to achieve smoother and optimal performance goals.

 

How to set budget and pacing in XPO?

1. From campaign dashboard, click +Ad Group to set up an ad group .

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2. Under Budget section, fill in details of your budget and KPIs, and select the desired pacing option and setting.

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A. Pacing Options

  1. DAILY: Budget is divided according to the daily budget cap and reset daily.

  2. FLIGHT: Budget is divided over the lifetime of the campaign. Campaign is stopped once budget is exhausted or it reaches the campaign end date, whichever occurs earlier.

 

B. Pacing Settings

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Fixed Schedule Pacing

  • EVEN: Smooth delivery over the campaign duration. Budget is divided equally for every minute.
    • FLIGHT-EVEN: 
      • E.g. ad group budget = $10,000, budget spent = $2,000, and the ad group has additional 16,000 minutes to bid.
        Pacing amount = ($10,000 - $2,000) / 16,000 mins = $0.5 per minute
    • DAILY-EVEN:
      • E.g. daily budget = $2,000, budget spent = $1000, and the ad group is planned to bid 1,000 minutes more for the same day.
        Pacing amount = ($2,000 - $1,000) / 1,000 mins = $1 per minute
  • ASAP: Ramp up the budget spend as soon as possible. Bidding will accelerate at a multiplier of 10 times pacing value as compared to EVEN.
    • FLIGHT-ASAP: 
      • E.g. ad group budget = $10,000 and duration is 3 months to execute this ad group strategy. XPO will spend the entire $10,000 in first few days if inventory is sufficient.
    • DAILY-ASAP:
      • E.g. daily budget = $2,000, XPO will spend the entire $2,000 in the first few hours of the day.

 

Smart Pacing

SMART FOR A REASON!

The aforementioned pacing settings are fixed-schedule pacing, relying on predefined rules to divide budget evenly over time or in shortest time.

Smart pacing address these drawbacks but does not aim to replace the fixed strategies instead it is introduced to complement them.

Smart Budget Pacing works to optimize strategies at an ad group level:

  • For a fixed priced ad group strategy: the goal is to spend according to schedule, with a secondary aim to improve engagement / clicks as we bid for high quality inventory
  • For an auto-optimization ad group strategy towards a pre defined KPI: It works to ensure pacing is adaptive to the market and tailored towards KPI at ad group level, while not violating budget constraints
  • FLIGHT-SMART: Budget fluctuates during ad group lifetime, while keeping a track on total budget spend not exceeding total budget cap.

  • DAILY-SMART: Budget fluctuates during the day. Total budget spend on that day must not exceed daily budget cap of the day (must specify the Daily Budget).

 

Fixed Schedule vs Smart Pacing

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(click image to enlarge)
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