How are minimum budgets calculated?

StitcherAds -

StitcherAds provides validation through Facebook's minimum_budgets API in order to determine the correct minimum budget for you adverts. The below explains how it works and gives examples in USD. Facebook's API does, however, provide currency conversion to that of your account currency so the values quoted below may not represent your minimums.

Different action types
Facebook provides minimum budgets for 3 different action types that you can bid for:
- Impressions
- High frequency actions
- Low frequency actions

Currently Facebook defines the following as high frequency actions:
- Link clicks
- App installs
- Video views
- Post engagements
- Page likes

and the only low frequency actions is:
- Offer claims.

How are the budgets applied?
When you have autobid selected, the following is applied (but in your relevant currency):
- bid for impressions - $1.00
- bid for high frequency actions (as described above) - $5.00
- bid for low frequency actions (as described above) - $40.00

When you have not selected autobid the following is applied:
- bid for impressionsthe budget must be greater than or equal to the bid but still no less than $1.00
- bid for high frequency actions - the budget must be greater than or equal to (bid x 5) but still no less than $5.00
- bid for low frequency actions - $40.00

NOTE:
If you are creating a campaign with a lifetime budget, there must be enough budget to meet the minimum daily budget requirements for each day of the campaign.

e.g. - If you are creating a campaign that bills on link clicks and want it to run for 10 days, the minimum budget per adset would be $50.00 ($5.00 per day)

e.g. 2 - If you were running 10 ad set permutations, the minimum lifetime budget would be $500.00 ($5.00 x 10 days x 10 adsets)

Known Bug
The minimum budgets api correctly converts the $USD values above to other currencies, for example, the min budget for impressions today would £0.66. Attempting to use that value for the min budget will fail though. Facebook, however, are still validating against their old min budget values where this is £1.00.

The same applies to other currencies where it seems that Facebook in the past did a one-off currency conversion and used those values for min budgets. This Old Min Budgets page shows a table of these old min values.

We have patched our min budget calculation to use the older value until the problem is fixed.

Further Examples
Autobid not selected, bidding for impressions:
- bid = $0.50, budget=$0.50 INVALID
- bid = $0.50, budget=$1.00 OK
- bid = $1.50, budget=$1.00 INVALID
- bid = $1.50, budget=$1.50 OK

Autobid not selected, bidding for high frequency actions:
- bid = $0.50, budget=$2.50 INVALID
- bid = $0.50, budget=$5.00 OK
- bid = $2.00, budget=$5.00 INVALID
- bid = $2.00, budget=$10.00 OK

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