Optimizing Budget Allocation for Contoso Hotels

Question:

Contoso Hotels wants to ensure that excessive spend on one campaign does not take budget from other campaigns. Which budget type should they select?

Answer:

Contoso Hotels should select the Constrained Budget option to prevent excessive spend on one campaign.

Explanation:

If Contoso Hotels wants to ensure that excessive spend on one campaign does not take budget from other campaigns, they should select the Constrained Budget option. This budget type sets a limit on the amount of money that can be allocated to a campaign, preventing it from using more budget than intended.

For example, if Contoso Hotels sets a constrained budget of $500 for a specific campaign, that campaign cannot exceed $500 in spending, even if it generates more clicks or impressions than expected. This ensures that the budget is distributed fairly among all campaigns, and excessive spend is avoided.

← Money the key to understanding financial systems Achieving stability in service business environment with level plan →