Date created: Jun 19, 2019 • Last updated: Oct 27, 2021
What is Ad Spend?
Ad Spend is the amount of money spent on specific ad variations within a specific campaign or ad set. This metric helps regulate ad performance.
Ad Spend Formula
How to calculate Ad Spend
Imagine you have a certain ad set with a daily budget of $200 and you have one or more different ads within that ad set. While it is possible that each of the ads within the ad set has spent the same amount of money, it is rare. Unless you specify otherwise, Ad networks tend to automatically spend more money on the most relevant ads, and less money on the least relevant ads. Ad Set Budget = $200 Ad 1 = $100 Ad 2 = $50 Ad 3 = $25 Ad 4 = $20 Ad 5 = $5
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More about Ad Spend
If you are running a campaign on Facebook or Google, it is rare that all of your ad variations within that campaign would have all spent the same amount. Certain variations will receive more budget if the ad network believes that they will perform better than other ads.
As an ad manager, it’s very important for you to clearly understand exactly how your money is being spent. With data like this, you can clearly measure how much has been spent on each ad variant. This would be very important for reporting purposes.