Budget Pacing

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---
name: Budget Pacing
description: Paces and reallocates ad budget across channels to hit CAC and volume targets. Use during active campaign management, at the start or end of a month, or when spend and performance are misaligned.
---

# Budget Pacing

Budget pacing is the practice of spending the right amount at the right time to meet both volume and efficiency targets. Overspending early depletes budget before high-value conversion windows; underspending wastes the month. Neither extreme is acceptable.

## Set Pacing Targets Before the Month Begins

Divide total monthly budget by calendar days to get a daily target. Adjust for known seasonality — if Tuesdays through Thursdays convert 20% better historically, weight those days higher. Set a daily tolerance band of plus or minus 15%. If spend is consistently outside that band, adjust bids or campaign budgets within 48 hours. Never wait until day 25 to react to a pacing problem.

## Monitor Spend-to-Conversion Ratio Daily

Pacing spend without tracking conversions is half the job. Check spend vs. target and CAC vs. target every morning. If CAC is tracking above target with spend on pace, slow the spend rather than waiting for the month to average out. If CAC is below target and volume is below target, this is the green light to accelerate — push budget into the channels and campaigns demonstrating efficiency.

## Reallocate Across Channels, Not Just Within Them

Keep a reallocation reserve of 10-15% of monthly budget unallocated at the start of the month. This reserve funds mid-month shifts when one channel outperforms. Do not pre-commit all budget to channels at the start of the month. Reallocation decisions should be made at the channel level weekly and at the campaign level daily. The channel with the best trailing 7-day CAC and available impression volume gets the next dollar.

## Handle End-of-Month Pressure Correctly

Do not increase bids or relax targeting to spend remaining budget in the final week. Underspending slightly is better than inflating CAC to zero out the budget line. If there is unspent budget in the final 5 days, move it into campaigns that are already performing — not into experiments or cold audiences. Document why budget was unspent for the next planning cycle.
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