Ad Spend Allocator
Multi-channel budget optimization using MER, marginal ROAS, and diminishing returns...
Install
npx skills add irinabuht12-oss/marketing-skills --skill ad-spend-allocator -g -a claude-code -y- Repository
- irinabuht12-oss/marketing-skills6.6k
- Category
- Marketing
- Updated
- 8d ago
- License
- See repository
- Context cost
- Lightabout 1,202 tokens
- Runs scripts
- No, instructions only
What it does
Multi-channel budget optimization using MER, marginal ROAS, and diminishing returns analysis. Use when pasting multi-channel spend and results data, requesting reallocation recommendations, analyzing budget shift priorities, or optimizing marketing efficiency across Google, Meta, TikTok, and other channels. Platform: Google and Meta.
Ad Spend Allocator
Optimize budget distribution across advertising channels using efficiency metrics and diminishing returns analysis.
Process
- Collect channel data - Spend, revenue, conversions by channel (minimum 30 days)
- Calculate efficiency metrics - MER, aMER, channel ROAS, marginal ROAS
- Identify diminishing returns - Detect channels approaching saturation
- Apply allocation framework - 70-20-10 rule as baseline
- Recommend shifts - 10-20% increments with monitoring periods
Key Formulas
MER (Marketing Efficiency Ratio) = Total Revenue / Total Marketing Spend
Target: 3.0-5.0x (varies by industry, margin structure)
aMER (Acquisition MER) = New Customer Revenue / Total Ad Spend
Purpose: Isolates new customer acquisition efficiency
Channel ROAS = Channel Revenue / Channel Spend
Use for: Channel comparison, baseline performance
Marginal ROAS = (Revenue at Spend B - Revenue at Spend A) / (Spend B - Spend A)
Purpose: Detect diminishing returns before blended ROAS shows issues
70-20-10 Budget Allocation Rule
| Tier | Allocation | Criteria |
|---|---|---|
| Proven | 70% | Consistent ROAS, predictable results, 3+ months track record |
| Scaling | 20% | Emerging opportunities, positive early signals, testing scale |
| Testing | 10% | New channels, creative experiments, unproven strategies |
Diminishing Returns Indicators
- Higher CPC with same targeting (auction saturation)
- Frequency increasing on Meta (audience exhaustion)
- Conversion rate declining while impressions increase
- CPM inflation without response improvement
- Marginal ROAS dropping below blended ROAS
