The Optimization section in the SegmentStream documentation offers a detailed explanation of the functionality of the marketing mix optimisation module.
Getting Started
Before diving into the optimisation module:
- Ensure your events tracking is set up - Events tracking.
- Connect at least one data source - Data Sources.
- Define a minimum of one conversion event - Conversions.
Navigation
- To access the optimisation module, simply navigate to the "Optimization" tab in the main menu.
- All your portfolios will be listed on the main page of the optimisation module.
Portfolio
A portfolio is a comprehensive report that provides recommendations for optimising the budget of a specific set of campaigns, ad platforms, or channels to achieve a defined goal.
Our advanced algorithm will assess the portfolio’s potential. It will then suggest optimal budget reallocation strategies for the time frame selected in the optimization schedule option, along with estimates of potential gains and ROI uplift.
Portfolio Settings
To set up a portfolio, configure the following settings. Note that all options, except the strategy and optimization granularity, can be edited later.
Strategy
Choose the optimisation strategy that best aligns with your goals. We provide the following options:
- Maximise Conversions: Allocate budget in a manner likely to generate the highest number of conversions.
- Maximise Revenue: Allocate budget in a manner that has the potential to generate the highest revenue.
Additional strategies will be available soon:
- Maximise clicks
- Maximise impressions
- Target CPA
- Target ROAS
Optimisation Goal
Select the conversion and attribution model that you want to use for your optimisation goal.
For more information on attribution models refer to our guide - Attribution models.
Optimisation Schedule
Choose the time interval to receive budget recommendations—options include weekly, bi-weekly, or monthly. Your portfolio's actual performance during the selected time interval will be compared to its potential future performance within the chosen time frame.
Optimisation Granularity
This setting allows you to choose the level at which budget allocation recommendations are generated. This setting provides flexibility in tailoring recommendations to suit your specific management preferences. There are three primary options available:
Campaign Level Granularity
If you select the campaign level granularity, SegmentStream will provide recommendations specific to individual campaigns. This option is ideal for users who prefer a more detailed, micromanaged approach to budget allocation, allowing for precise control over campaign-level spending.
Ad Platform Granularity
For those who prefer managing marketing budgets at a broader level, the Ad platform granularity is available. By choosing this option, SegmentStream will suggest an overall budget allocation strategy for optimal performance across each ad platform used.
Channel & Custom Granularity
To further customize the level of granularity, you can leverage the predefined Channel dimension or create new custom dimensions. This allows you to group campaigns and ad platforms based on your unique business logic, tailoring the optimization recommendations to align with your specific needs. For detailed instructions on creating custom dimensions, refer to our guide - Custom dimensions.
Campaigns
If the campaign level granularity was selected you will be able to choose the campaigns for which you want to optimise budget allocation.
Portfolio report
Each portfolio report shows potential gains achievable through budget optimization recommendations, along with a list of all items included in the portfolio.
It is comprised of the following sections:
Details bar
The bar displays the name of the portfolio along with its settings, clicking the More Options icon on the right will allow you to edit or delete the portfolio.
Header
The header section offers a concise overview of the chosen portfolio's actual performance during the selected time frame. Key metrics, including Spend, Conversions, and CPA, are prominently displayed. Moreover, the header provides insight into the potential performance of the portfolio for the selected optimization schedule time frame, presenting various scenarios based on different optimization budget settings.
Switching Scenarios
By default, the portfolio is set to Scenario 1, designed to optimize performance for increased conversions by redistributing a budget equivalent to the one utilized in the past time frame selected in the optimisation schedule.
Click on any of the scenarios to recalculate the budget allocation recommendations and visualize the potential performance based on the selected scenario.
Default Scenarios
- Scenario 1 - Fixed Spend: Optimize campaigns for increased conversions by redistributing a budget equivalent to the one utilized in the selected time frame.
- Scenario 2 - Spend +15%: This scenario recommends a budget adjustment to achieve more conversions by increasing the budget by 15% compared to the selected time frame.
- Scenario 3 - Stable Conversions: Budget recommendations aim to maintain the same level of conversions as the selected time frame while minimizing the budget.
Creating Custom Scenarios
If the default scenarios don’t fit your budget or business needs, you have the flexibility to create custom scenarios with your preferred budget by clicking on the “+ ADD CUSTOM SCENARIO” button.
Making big changes to your spending—more than 15% different from what you currently spend—could seriously change how your portfolio performs.
For further adjustments, you can click on the “More Options” icon on the top right corner of each custom scenario.
Item list
A list of the campaigns, ad platforms, channels or custom dimension groups within the portfolio, along with the following columns:
- Spend: Ad spend for the set reporting period.
- Proposed Spend: The recommended budget adjustment and proposed spend for the selected time frame.
- Revenue/Conversions: Total revenue or total conversions for the selected time frame, depending on the selected strategy (Maximize Revenue/Conversions).
- ROAS/CPA: Return on ad spend or cost per action for the selected time frame, depending on the selected strategy (Maximize Revenue/Conversions).
- Predicted Gain/Loss: Predicted revenue or conversion gain if the budget adjustments are implemented for the selected time frame, depending on the selected strategy (Maximize Revenue/Conversions).
- More: Allows you to delete the item from the portfolio, allowing for a more targeted optimization of other items that possess significant data or potential for higher ROI.
