GIVE THE MACHINE A MANDATE BEFORE YOU GIVE IT A BUDGET

Summary from the TLDR Marketing newsletter

Knight Capital lost $460M in 45 minutes, and Zillow lost $304M after automated systems made costly decisions without adequate controls. Ad platforms pose similar risks when algorithms control spending without clear limits. Before launching automated campaigns, define what the system can buy and which decisions require approval. Set spending caps for brand searches and existing customers. Use independent holdout tests to measure results and set clear criteria for pausing campaigns.