Budget Adjustments
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      3. Budget Adjustments

      When to Use AI Mode in Adverank

      A new model to Adverank, AI Driven uses a combination of metric data in the system as well as a machine learning (ML) occupancy forecast to recommend both budget increases and decreases.

       

      Basic Terms:

      You would use AI Mode in Adverank when you want data-driven budget recommendations based on occupancy trends, PPC performance, and move-in/move-out activity—helping you optimize ad spend without making manual calculations. It’s ideal for balancing cost efficiency and demand while maintaining control over adjustments.

      Formula

      The AI Driven model adjusts the budget based on occupancy levels, PPC clicks, and move-ins/move-outs. The budget will increase when occupancy or clicks are lower than expected and decrease when they exceed the target.

      Budget Strategy

      AI Driven mode offers three budget strategies, each with different sensitivity levels to changes in occupancy, clicks, and move-ins/move-outs.

      • Conservative: Small adjustments, reacting slowly to changes.

      • Moderate: Balanced approach with moderate adjustments.

      • Aggressive: Larger, faster adjustments based on changing conditions.

      How Sensitivity Factors Work

      • Occupancy Sensitivity (f1): Higher values increase the budget more aggressively when occupancy drops below the target.

      • Click Sensitivity (f2): Adjusts budget based on changes in PPC clicks compared to the 7-day average.

      • Move-in/Move-out Sensitivity (f3): Increases budget if move-outs exceed move-ins and decreases budget when move-ins are higher.

      Predicting Occupancy

      Adverank uses the ARIMA model to forecast occupancy trends based on historical data. An advanced version, SARIMAX, incorporates market-wide occupancy trends to improve accuracy. This allows Adverank to predict occupancy fluctuations and adjust budgets accordingly.

      Budget Adjustment Caps

      To ensure gradual changes, AI Driven mode applies budget increase limits based on the selected strategy:

      • Conservative: 10% max increase per adjustment.

      • Moderate: 15% max increase per adjustment.

      • Aggressive: 25% max increase per adjustment.

      These limits help control spending while responding effectively to market conditions and occupancy trends.