All examples for Budget Allocation Optimizer

E-commerce ROAS-Based Channel Reallocation

Evaluates 5 months of e-commerce marketing data using ROAS metrics: Facebook 3.2x, Google Shopping 5.8x, TikTok 1.9x. Identifies Google Shopping as severely underfunded (33% of budget despite 5.8x ROAS) and TikTok as underperformer (1.9x ROAS consuming 22% of budget). Recommends shifting $10K-$18K to Google Shopping from TikTok and Facebook. Projects 24-47% revenue increase and blended ROAS improvement from 3.78x to 4.65x-5.20x. Demonstrates handling of ROAS metrics vs CAC and provides detailed scaling guidance for each channel.

Input

What you provide to the skill

E-commerce brand with 5 months: Facebook $20k/mo 3.2x ROAS, Google Shopping $15k/mo 5.8x ROAS, TikTok $10k/mo 1.9x ROAS. Goal: improve blended ROAS.

Output

What the skill generates for you

Budget Allocation Analysis & Recommendations

Current Performance Summary

Channel Monthly Spend ROAS Revenue Efficiency Rank
Google Shopping $15,000 5.8x $87,000 #1 (Excellent)
Facebook $20,000 3.2x $64,000 #2 (Acceptable)
TikTok $10,000 1.9x $19,000 #3 (Poor)
TOTAL $45,000 3.78x $170,000 -

Critical Finding: Google Shopping (5.8x ROAS) is 3x more efficient than TikTok (1.9x) yet receives only 33% of budget. TikTok’s 1.9x ROAS is critically low.

Recommended Reallocation - Conservative Scenario

Channel Current Recommended Change
Google Shopping $15,000 $25,000 +$10,000 (67%)
Facebook $20,000 $17,000 -$3,000 (15%)
TikTok $10,000 $3,000 -$7,000 (70%)
TOTAL $45,000 $45,000 $0

Expected Impact:

  • Projected revenue: $210K-$220K/month (+$40K-50K, +24-29% increase)
  • Projected blended ROAS: 4.65x-4.90x (+0.87-1.12x, +23-30% improvement)
  • Confidence: High (75-80%)
  • Timeline: 30-60 days

Aggressive Scenario: $33K to Google Shopping projects $230K-$250K revenue (+35-47%) with 4.80x-5.20x ROAS. Requires +$3K total budget increase.

Channel-Specific Recommendations

Google Shopping (+$10K): Expand product feed, increase bids on top SKUs, test Performance Max. Monitor for 10-20% efficiency degradation at higher spend.

Facebook (-$3K): Focus on top audiences only, pause underperformers. May improve efficiency at lower, focused spend.

TikTok (cut to $3K): Keep only best creative, use as testing ground, re-evaluate in 90 days.

Implementation Timeline

  • Weeks 1-2: Audit campaigns, plan scaling strategy
  • Weeks 3-4: Scale Google gradually ($15K→$18K→$21K→$25K), cut TikTok to $6K then $3K
  • Months 2-3: Monitor daily ROAS, optimize based on results

Limitations: Does not account for audience saturation, cross-channel attribution effects, customer LTV differences, or seasonality.