If you were in charge of a flexible budget for all of a large retailer’s campaigns, what steps would you take to maximize success?
- Develop shared budgets and portfolio bid strategies as a means of maximizing campaign flexibility and using AI to full advantage.
- Define new performance targets every month or quarter in order to optimize AI-driven solutions.
- Develop different budgets for campaign experiments and unforeseen market changes as a means of improving chances for success.
- Prevent unneccessary budget usage during seasonal periods by capping budgets at the average daily spend.
Explanation:
The selected answer, **Develop shared budgets and portfolio bid strategies as a means of maximizing campaign flexibility and using AI to full advantage**, is the most appropriate strategy for maximizing success with a flexible budget for a large retailer’s campaigns. Shared budgets allow for the allocation of funds across multiple campaigns, enabling dynamic distribution based on performance and demand fluctuations. This flexibility ensures that resources are efficiently utilized, directing investment to high-performing campaigns while adjusting spending for underperforming ones. Additionally, portfolio bid strategies leverage artificial intelligence (AI) algorithms to optimize bidding across a group of campaigns, considering various factors such as conversion likelihood and target return on ad spend (ROAS). By implementing shared budgets and portfolio bid strategies, the retailer can harness the full potential of AI-driven solutions, adapt to changing market conditions, and achieve maximum success across their advertising efforts.