Mimbi platform

Mastering Retail Media: 5 essential indicators to monitor Retail Media budgets (Part 3)

Frederic CLEMENT
May 2, 2024
min read
Retail media budget monitoring

In the first two parts of this series (see part 1 and part 2), we explored how mimbi TRANSFORM helps brands and agencies shape their retail media analytics and drive results. Now let's dive into five powerful use-cases that enable more effective monitoring of your campaigns and budgets. From predicting month-end spend to identifying wasted spend on underperforming targets, these metrics provide the visibility and control needed to proactively optimize budgets and performance.

Expected month spend

What it is: expected month spend predicts your total spend for the current month based on costs incurred month-to-date plus an extrapolation of your average daily spend over the past 7 days.

Example: if you've spent $40,000 month-to-date and your average daily spend last week was $1,000, expected month spend would be $40,000 + ($1,000 * remaining days in month).

Benefit: anticipate if you're pacing over or under budget while there's still time to adjust. Proactively reallocate budget to high-performing campaigns or dial back spend on underperformers.

Spend trend VS Budget

Daily budget spent percentage

What it is: this indicator shows the percentage of your daily budget that has been consumed, calculated as (Cost for period / Days in period / Daily Budget)

Example: if your daily budget is 1000€ and you spent 750€ over the past 2 days, your daily budget spent percentage would be 37.5% (750€ / 2 days / 1000€).

Benefit: quickly determine if your campaigns are over or under-spending on a daily basis relative to the budget you've set. Take immediate corrective action to ensure optimal budget pacing.

Daily budget spent

Recommended new daily budget

What it is: this indicator recommends a daily budget for the remainder of the month to hit your monthly spend target, calculated as (Monthly budget - Month-to-date spend) / Days left in month.

Example: if your monthly budget is £50,000, you've spent £35,000 month-to-date, and there are 10 days left, your recommended new daily budget would be £1,500.

Benefit: continuously course-correct your daily spend to ensure you fully leverage your budget without overspending. Maximize your working media while taking recent performance into account.

New budget recommendation

Wasted spend on low-performing targets

What it is: the amount of spend going to campaigns, ad groups, products or keywords that fail to meet your performance goals (e.g. ROAS below 2.5).

Example: if your total monthly spend is $50,000 and $5,000 of that is going to keywords with ROAS under 2.5, then 10% of your budget is wasted spend on low-performing targets.

Benefit: Flag portions of your retail media budget that aren't generating sufficient returns. Quickly quantify potential savings from pausing or eliminating underperforming spend and prioritize optimization efforts on the targets that will free up the most budget.

Wasted spend

Budget runrate percentage

What it is: budget runrate percentage compares your actual month-to-date spend to your target spend based on an even daily budget distribution. It's calculated as (Month-to-date spend / (Monthly budget / Days in month * Days past in month)).

Example: If your monthly budget is 30 000€, you've spent 12 000€ month-to-date, and 15 out of 30 days have passed, your budget runrate percentage would be 80% (12 000€ / (30 000€ / 30 days * 15 days past)).

Benefit: know exactly how your budget is pacing at the campaign level. Runrate percentages below 100% signal an opportunity to boost spend, while figures above 100% risk exhausting your budget early.

Runrate %

mimbi equips retail media teams with these insightful indicators and more, empowering them to be proactive rather than reactive in optimizing spend. No longer do you have to wait until the end of the month to course-correct pacing issues or spot wasted spend.

Paired with smart automation tools, these metrics help brands and agencies make the most of advertising budgets.

Ready to upgrade your retail media analytics and optimization capabilities? Experience the power of mimbi for yourself - request a demo today!

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