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Definition
Spend pacing is how evenly a budget is used across a period, measured against the share of that period which has already passed. It shows whether spend is ahead of, on, or behind plan while there is still time to act before the period ends.
Pacing ratio = spend to date / (period budget x share of the period elapsed)Example with made-up numbers: Made-up scenario: a month has 30 days and the budget is 9,000. On day 10 the plan is 9,000 x 10 / 30 = 3,000. Spend to date is 3,600, so the pacing ratio is 3,600 / 3,000 = 1.20, which is 20 percent ahead. The team checks whether a planned sale explains the lead before it changes the daily budget.
How to use it
A pacing check compares spend so far with the part of the budget that should have been used by this point. The check uses the same period as the budget, usually a calendar month. The plan can be flat across the days, or it can follow the store's own calendar of sales and launches. A simple check divides spend to date by the budget, then compares the result with the share of days passed.
Pacing is a planning tool, not a daily target. Spend often runs ahead before a sale and falls behind after it, and a planned spike is not a problem by itself. Read pacing together with the return. Fast spend with a weak return needs a different response from fast spend that still meets the target. Note planned spikes in the report, so the reason is on record.
