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πŸ“ How to Use Spend Targets and Spend Caps to Control Budget Allocation

Managing how your budget is distributed across groups. This article explains the difference between Spend Targets and Spend Caps.

Ana Paula Capossio avatar
Written by Ana Paula Capossio
Updated over 3 months ago

πŸ’‘ What is a Spend Target?

A Spend Target is the planned or desired amount you want a group to spend. It acts as a flexible guideline, not a strict limit.

Use a Spend Target to:

  • Acts as a guide for how much to spend in a group.

  • Helps manage pacing and alignment with performance goals

  • Not enforced β€” the system adjusts based on availability and performance

  • If a target is higher than the group's Spend Cap, it is automatically adjusted to match the cap

πŸ”Ž Use Spend Targets to influence spend without setting a strict limit.
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πŸ” What is a Spend Cap?

A Spend Cap is the maximum amount that a group is allowed to spend. Once this amount is reached, the system stops spending for that group.

Use a Spend Cap to:

  • A hard limit that prevents overspending

  • Used when you want to restrict how much a group can spend

  • Does not impact how the remaining budget is distributed β€” it only limits the specific group it applies to

πŸ”Ž Use Spend Caps to protect your budget or limit test groups.

πŸ“Š Common Use Cases

Here’s how you can use Spend Targets and Spend Caps to manage your campaigns more effectively:
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Use Case

Description

Suggested Control

Limit low-performing groups

Stop spending once a low-quality group hits a limit

βœ… Spend Cap

Set a default for groups

Define a soft target when you’re unsure of expected performance

πŸ’‘ Spend Target

Control spend for a specific group

Make sure one group (e.g., a test or low-priority group) only receives a small portion of the total budget

βœ… Spend Cap or πŸ’‘ Spend Target

Ensure a group spends at least X%

Push spend toward high-value groups

πŸ’‘ Spend Target

Force exact X% spend

Lock a group to a strict portion of total spend

βœ… Spend Cap + πŸ’‘ Spend Target

Spend between X% and Y%

Create minimum and maximum ranges for flexibility and control

βœ… Cap + πŸ’‘ Target

πŸ’… UI implementation :

  • Limit the spending of a low-quality group by spending a lot

  • Default

  • Third group spend
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  • Ensure a group spends at least X%

  • Force an exact X% spend
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  • Spend between X% and Y%
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