---
title: Monthly Budget Management
description: It is a type of strategy in which the algorithm looks for the right balance between exploration and optimisation for your budget constraint.
---
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# Monthly Budget Management
## It is a type of strategy in which the algorithm looks for the right balance between exploration and optimisation for your budget constraint.
This algorithm provides a solution for managing advertising campaigns with a simple monthly budget through its configuration settings. When activated, the algorithm will strive to spend the set budget while minimizing the ACOS.
### Main use cases
**Budget constraint.** When a client requires a specific expenditure, this algorithm has been designed to ensure that the budget is spent evenly throughout the month while maximizing the volume of sales. By optimizing the allocation of resources, this approach ensures that the client's budget is used efficiently and effectively, resulting in a better return on investment for their advertising campaigns.
**Low historical data.** When historical data is insufficient, the "ACOS target" algorithm may struggle to accurately adjust bids. However, the monthly budget management algorithm offers the best solution for collecting data while maintaining spending control through the mandatory spending rule and performance-based adjustments. This approach allows for more effective use of resources and ensures that the advertising campaigns achieve optimal performance, even with limited historical data.
**Launching new products. ** It's hard to know at which ACOS a new ASIN will perform, and to estimate the amount of sales it will generate. For these reasons, a good way to launch a new product is to use the Monthly Budget Target algorithm mode. Just decide on a budget you are willing to invest during the launching phase and set it as a target. The AI will spend your budget while trying to maximize sales. After a month, you can decide you want to keep the strategy running, or move the ASIN(s) to another strategy, or switch the algo mode to ACOS target (only if the strategy generated at least 50 sales in 30 days).
### How to Use Monthly Budget Target?
When you create a [strategy](https://help.m19.com/standard-strategy-set-up) :
- - Select the "Monthly Budget Target" algorithm.
- Assign a budget for the ongoing month.
#### **Important Considerations:**
- The assigned **budget** applies to the **ongoing calendar month**, **not a trailing 30-day period.**
- On the 1st day of each month, the budget will reset. If you start a Monthly Budget in the middle of a month, make sure to adjust the budget for the next month accordingly.
### How to Adjust the Budget:
- Hover over "Monthly Budget" until the edit icon appears, then click on it.
- Adjust the budget for the next month as needed.
- Click on "Update" to save your changes.
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