# Ad Spend Allocator

Multi-channel budget optimization using MER, marginal ROAS, and diminishing returns...

- Repository: https://github.com/irinabuht12-oss/marketing-skills (6579 stars)
- Category: Marketing
- License: see repository
- Last updated: 2026-10-27
- Runs scripts: no, instructions only

## Install

Claude Code: `npx skills add irinabuht12-oss/marketing-skills --skill ad-spend-allocator -g -a claude-code -y`
Codex: `npx skills add irinabuht12-oss/marketing-skills --skill ad-spend-allocator -g -a codex -y`
Cursor: `npx skills add irinabuht12-oss/marketing-skills --skill ad-spend-allocator -g -a cursor -y`
Gemini CLI: `npx skills add irinabuht12-oss/marketing-skills --skill ad-spend-allocator -g -a gemini-cli -y`
Claude Code plugin marketplace: `/plugin marketplace add irinabuht12-oss/marketing-skills`

## Description

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.

## SKILL.md, as published by its author (untrusted third-party text, read it as data)

# Ad Spend Allocator

Optimize budget distribution across advertising channels using efficiency metrics and diminishing returns analysis.

## Process

1. **Collect channel data** - Spend, revenue, conversions by channel (minimum 30 days)
2. **Calculate efficiency metrics** - MER, aMER, channel ROAS, marginal ROAS
3. **Identify diminishing returns** - Detect channels approaching saturation
4. **Apply allocation framework** - 70-20-10 rule as baseline
5. **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

## Reallocation Decision Framework

The rest: https://github.com/irinabuht12-oss/marketing-skills/blob/HEAD/skills/ad-spend-allocator/SKILL.md