> For the complete documentation index, see [llms.txt](https://help.citrusad.com/retail-media-interface/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://help.citrusad.com/retail-media-interface/campaign-creation-and-editing/strategy/how-average-daily-limit-works.md).

# How average daily limit works

{% hint style="info" %}
**Rolling out in Q1 2026.**

Improvements are coming to daily spend to automatically pace, which is detailed below.

You'll know if this is activated for your retailer as "Daily limit" is named **"Average daily limit".**
{% endhint %}

<figure><img src="/files/9w0O21eNTtdlPwkrfh63" alt=""><figcaption></figcaption></figure>

## Overview

Average daily limit on a campaign controls how much can be spent spend **on average per day** while allowing the system to pace delivery smoothly across the calendar month. Rather than enforcing a strict daily cap, daily spend is designed to help campaigns adapt to real-world traffic fluctuations, reduce underspend, and deliver more consistently over time.

***

### Daily spend basics

When you set an average daily limit on a campaign, behind the scenes, the system:

* Converts the daily limit into a monthly pacing target
* Tracks under- and over-delivery within the calendar month
* Adjusts daily spend dynamically to stay aligned with the monthly target

This allows campaigns to respond to changes in traffic without requiring constant manual adjustments.

{% hint style="success" %}
If your campaign is effectively pacing to the limit you have set, you won't notice much change from the prior behaviour of a hard daily limit. The new average daily limit assists to get your campaign pacing back-in-line with the expected spend.
{% endhint %}

***

### Preparing to upgrade to average daily limits

If you're here before March 3rd, your campaigns will be upgraded automatically to average daily limits. There's nothing you need to do. Below are some example campaigns and the changes you can expect to see:

| Example                                           | Average pacing to daily budget           | Expected change                                                                                                                                                                                                             | Recommended action                                                                              |
| ------------------------------------------------- | ---------------------------------------- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------------------------------------------------- |
| Campaign reaches its daily limit all of the time  | Reaches daily budget 100% of the time    | No change expected as the daily limit is consistently reached.                                                                                                                                                              | None                                                                                            |
| Campaign reaches its daily limit most of the time | Reaches daily budget 80% of the time     | On high traffic days, the campaign will spend slightly over the limit to capture prior underspend. The campaign won't significantly overspend as it paces across the month.                                                 | None. No long term impact expected. Campaign will automatically pace and re-capture underspend. |
| Campaign is under-pacing                          | Reaches daily budget 50-80% of the time. | Minimal to no change expected. Campaign is unlikely to spend over the daily limit as it is under-pacing. If it has the opportunity to spend over the limit, it can spend up to 2x the daily limit to re-capture underspend. | Reassess campaign daily budget or campaign strategy.                                            |
| Campaign is significantly under-pacing            | Reaches daily budget <50% of the time.   | No change expected. Campaign is significantly underspending. In the unlikely event of reaching the daily limit, it can spend up to 2x the daily limit to re-capture underspend.                                             | Reassess campaign daily budget or campaign strategy.                                            |

{% hint style="success" %}
To see how your campaigns are pacing, we recommend looking at the [Campaign pacing indicators](/retail-media-interface/campaign-management/campaign-pacing-indicators.md)
{% endhint %}

### How pacing works

{% stepper %}
{% step %}

#### Monthly pacing target

The system automatically calculates a monthly budget target using your daily spend and the average number of days in a month (30.4).

> Example:\
> $100 daily limit → $3,040 monthly pacing target

You do not need to set a separate monthly budget.
{% endstep %}

{% step %}

#### Day-to-day spend behaviour

* On low-traffic days, campaigns may spend **less than the daily limit**.
* Any underspend is tracked and retained within the calendar month. Underspend is automatically adjusted into the remaining daily budget to evenly pace underspend through to the end of the month, or the campaign's end date.
* On higher-traffic days, campaigns may spend **more than the daily amount** (up to 2×) to recover earlier underspend.

This prevents campaigns from stopping early on busy days and helps avoid lost budget due to short-term traffic dips.
{% endstep %}

{% step %}

#### End-of-month behaviour

As the end of the calendar month approaches, pacing becomes more assertive to use any remaining unspent budget, while still respecting all limits. In the rare event of underspend remaining, it is not carried over to the next month.
{% endstep %}
{% endstepper %}

### Example: Daily spend over time

<table><thead><tr><th width="64.13336181640625">Day</th><th width="148.7833251953125">Daily Limit</th><th>Actual Spend</th><th width="117.699951171875">Unspent Budget</th><th>Explanation</th></tr></thead><tbody><tr><td>1</td><td>$50</td><td>$50</td><td>$0</td><td>No prior underspend, spend aligns with daily limit</td></tr><tr><td>2</td><td>$50</td><td>$35</td><td>$15</td><td>Lower traffic leads to underspend</td></tr><tr><td>3</td><td>$50</td><td>$53</td><td>$12</td><td>System begins pacing stored underspend</td></tr><tr><td>4</td><td>$60 (changed)</td><td>$53</td><td>$9</td><td>Updated daily spend applies from the next day</td></tr><tr><td>5</td><td>$60</td><td>$63</td><td>$6</td><td>Pacing continues to reduce remaining underspend</td></tr></tbody></table>

This behaviour is expected and reflects normal pacing as traffic fluctuates across the month.

### Best practices

* Treat daily limit as an **average**, not a strict daily cap.
* Avoid frequent edits; update daily limits **once a week or less** where possible, only adjusting if necessary.
* Use wallets to manage overall spend, and campaign daily limits for individual pacing.
* Expect variability day to day, this is normal and intentional.
* Monitor your pacing with the [Campaign pacing indicators](/retail-media-interface/campaign-management/campaign-pacing-indicators.md).

### What happens when you adjust the daily limit

#### Updating the daily limit

* Changes to daily limit take effect from the **next day**.
* If multiple changes are made on the same day, the **highest daily limit set that day** is used for spend calculations.
* Previously accumulated underspend is preserved and continues to be paced.

#### Removing and re-adding a daily limit

Removing a daily limit and adding it again resets pacing. This is generally not recommended, as pacing already resets automatically at the start of each calendar month.

#### Monthly reset

At the start of each new calendar month:

* The monthly pacing target is recalculated
* Any carried underspend or overspend is cleared

***

### Using daily limit with other limits

#### Wallet daily spend

Wallet daily spend limits continue to control **total spend across multiple campaigns**. Campaign daily spend always respects wallet-level constraints.

#### Total spend limits

If a campaign must not exceed a fixed maximum budget, use a **total spend limit** instead of an average daily limit. This acts as a hard cap, regardless of pacing.

### FAQs

#### Why did my campaign spend more than the daily amount today?

Daily spend is an average. If the campaign previously underspent, it may spend more on higher-traffic days to stay aligned with the monthly pacing target.

#### What happens if my campaign underspends early in the month?

The system automatically tracks underspend and paces it toward the end of the month. No action is required.

#### What happens if I start a campaign mid-month

The system  will only factor in the rest of the month to determine the spend pacing.

#### What happens if I reduce my daily spend mid-month?

The campaign will re-pace using the remaining budget for the rest of the month, starting from the next day.

#### Does changing daily spend remove unspent budget?

No. Unspent budget is retained within the calendar month and continues to be paced.

#### How does daily spend work with campaign end dates?

Pacing continues until the earlier of the campaign end date or the end of the calendar month.

#### Do I need to set a monthly budget?

No. The system automatically derives a monthly pacing target from your daily spend.


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