eBay have introduced an update to their budget management for priority campaigns, moving from weekly to monthly budget pacing. This change, they say, offers greater flexibility to optimise your ad spend effectively.
eBay’s new monthly budget pacing model uses your target daily budget as a guideline to efficiently plan your monthly advertising spend. This refreshed approach helps you get the most out of your monthly budget by increasing spend on days with high potential and reducing it on lower-opportunity days. eBay have also put safeguards in place in order to help avoid premature spend exhaustion before month end.
Your spend will never exceed 30.4 times your target daily budget in a calendar month, or more than twice your daily target in a single day. This smarter approach helps maximise campaign performance by making the most of high-traffic periods while keeping your overall budget in check.
Keep in mind that adjusting during the calendar month to a different target daily budget may affect this distribution, so adjustments should be made thoughtfully to maintain optimal pacing.
How eBay monthly budget pacing works
Campaign start during the month
Your total monthly spend won’t exceed your target daily budget multiplied by the remaining days in the calendar month, including the start day.
- For example: If you start a new campaign with a £10 target daily budget on 15 Jan, there are 17 days left in the month (including the 15th & 31st). Therefore, the maximum spend for the remainder of the month would be £170 (£10×17 remaining days).
Budget change during the month
Your total monthly spend won’t exceed the amount already spent plus your new target daily budget multiplied by the remaining days in the calendar month.
- For example: If you raise your campaign’s target daily budget from £10 to £15 on 15 Jan, assuming you’ve spent £150 by then, your total monthly budget will increase from £304 to £405 [i.e. £150 + (17*£15)]. Therefore you will have £255 left to spend for the rest of the month.
Campaign end during the month
Your total monthly spend won’t exceed your target daily budget multiplied by the number of days from the start of the calendar month up to and including the campaign’s end date.
- For example: If your campaign starts on the 1st with a £10 daily budget and is set to end on the 15th of the month, the maximum spend for the month would be £150 (£10×15 days, including the 15th).
Tips for setting a target daily budget
- Align with business goals: Set a budget that reflects your product profit margins and strategic objectives.
- Start small: If this is your first priority campaign, consider a conservative budget, and scale as you identify successful strategies.
- Use eBay’s recommendations: Leverage eBay’s suggested budgets, which consider listing attributes and competition for optimal performance.
- Plan for monthly cap: Keep in mind the 30.4 multiplier cap to avoid budget limitations.
- Adjust wisely: Mid-month changes impact your budget and performance; use real-time insights.
- Be flexible: Understand that daily spend may fluctuate above or below your target as eBay’s algorithms optimise to find you the best opportunities.
- Regularly review performance: Continuously monitor and refine your strategy using eBay’s campaign insights.
