Budget Allocation Prediction


Predictive Budget Allocation involves forecasting marketing campaign performance and determining the optimal budget distribution across multiple Ad channels based on historical marketing campaign data. By harnessing the power of AI, budget allocation prediction helps businesses make informed decisions, maximizing ROAS and minimizing acquisition costs.

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The challenge

When it comes to marketing, one of the most daunting challenges is optimizing budget allocation across various Ad channels and campaigns. Companies face the challenge of reducing expenses in online advertising while seeking to improve the ROAS of campaigns and reduce the cost of acquiring customers. Businesses often struggle to predict which campaign will perform better and bring high Customer Lifetime Value (CLV) and the need to maximize the ROI from marketing efforts. Without accurate predictions, marketing teams risk overspending on underperforming channels or missing out on valuable opportunities to reach their target audience effectively. 

Acquisition is getting very expensive. Customer life cycles are becoming increasingly complex, and acquisition journeys are no longer linear. Shimoku addresses these issues using AI to uncover actionable insights to power acquisition by optimizing campaign performance, budget allocation, and reducing cost per acquisition.

The Solution

Shimoku's AI-powered Budget Allocation offers businesses a solution to pinpoint the most effective campaign performance by providing predictions for ROAS, Customer LTV, recommended budget adjusted, and expected revenue for each campaign. These actionable insights empower marketing teams to make informed decisions and optimize budget allocation and redistribution for each campaign and ad group that attracts high-value customers.

Benefits of Implementing Shimoku´s AI Budget Allocation Solution
Optimize campaign strategy
  • Predict and refine Ad channel performance to allocate budgets effectively.
  • Identify high-value channels for immediate action, enhancing campaign effectiveness. 
  • Understand how your campaigns will perform, but also what will drive their performance.
  • Get tailored recommendations to improve the campaign's audience

Maximize Return on Ad Spend (ROAS)
  • Get a sense of your ROAS early in the campaign lifecycle so you can focus your efforts on what will provide you with the best ROI.
  • Reduce acquisition costs with smarter spending on campaigns.
  • Reduce the cost per lead.
  • Test what-if scenarios with your budget allocation by using simulation tools. Identify where, when, and how much to allocate to improve your marketing efforts' Return on Advertising Spend.

Predict Customer LTV
Predict the Revenue expected for each Campaign
Predict the Recommended Budget adjusted for each Campaign
Enhance marketing efficiency
  • Target potential customers with high conversion likelihood.
  • Increase conversion rates by focusing on high-priority, qualified leads for more cost-effective marketing spend.
  • Reduce acquisition costs with smarter spending on campaigns.
  • Reduce the cost per lead.

Uploading Historical Data

Begin by uploading historical marketing data, including information on past campaigns : Ad channels performance, audience demographics, conversion rates, historical paid media data, campaign name, ad body, campaign objective, CPA, clicks, ROAS, campaign cost, total purchases, impressions, and destination URL. Our platform will analyze this data to build predictive models that forecast the Ad campaign performance and optimal allocation of your marketing budget.

Unlocking Growth Opportunities

Once the AI Budget Allocation model is trained, you'll gain access to actionable recommendations for optimizing your campaign performance and spend. Discover opportunities to reallocate budget to high-performing campaigns and channels, or explore new strategies to maximize your customer lifetime value. The model´s outcome will provide a ranked list of published campaigns based on their ROAS prediction, recommended budget adjusted, or expected revenue, along with an explanation of the factors influencing the scoring. These outcomes will empower you to promptly cease low-performing campaigns and redistribute resources towards those demonstrating higher ROAS.

Reallocate budget to high-performing

Actionable recommendations

Optimize your campaign performance

Analyzing the Drivers & Barriers Behind AI Budget Allocation

In the world of AI, the concept of Explainability has emerged as a core of trust and transparency. While AI models are incredibly relevant, their intricate architectures can often operate as "black boxes," making it challenging for users to understand their underlying mechanisms and decision pathways. Explainability in AI aims to demystify these processes, offering clear, intuitive insights into how algorithms arrive at specific outcome. This is not just about technical transparency but about building a bridge of trust between AI and users. Gaining an understanding of how AI models work will enhance your confidence in the system, encourage broader adoption, and ensure alignment with business goals.

Our solution provides an Explainability layer and transparent insights into the factors driving the model's predictions, allowing you to understand the key drivers influencing campaign performance. By identifying both positive and negative indicators, you can refine your campaign strategies to enhance customer lifetime value and drive revenue growth.

From Insights to Action

At the core of our solution lies an Actionability layer that bridges the gap between data insights and tangible business outcomes. At Shimoku, we firmly believe that the true power of AI lies not just in understanding data but in leveraging it to drive meaningful actions within a company's operations.

With traditional analytics solutions, businesses often find themselves drowning in a sea of data, struggling to derive actionable insights that can drive real change. Our approach flips this paradigm on its head by not only providing valuable insights but also empowering businesses to swiftly translate these insights into concrete actions that drive monetization and efficiency.

Our solution leverages Generative AI technology to offer tailored recommendations aimed at optimizing your campaigns, ads and audiences. With our system in place, each published campaign receives a comprehensive set of suggestions designed to assist your marketing team in enhancing campaign performance.

Fast Integration with Your Tech Stack

Act on the insights generated by our Budget Allocation Prediction solution by activating your data across various touchpoints in your marketing and ads platforms. 

Shimoku API simplifies the deployment of AI models across diverse platforms, spanning from Ads Platforms such as Facebook Ads, Google Ads, Linkedin, TikTok, to web applications, email marketing tools, and more. With seamless integration capabilities, businesses can leverage Shimoku's predictive analytics to drive hyper personalization and enhance ROI from marketing initiatives.

Maximize the Value of AI With Our Help

Start optimizing your Marketing Channel Budget Allocation today with Shimoku's advanced AI solution.

Join the hundreds of companies already leveraging the value of AI and increasing their revenue with Shimoku. Complete the form and discover how we can help your business.

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