ads-budget

Files (3)

• SKILL.md
• bidding-strategies.md · references/
• budget-allocation.md · references/

SKILL.md (first lines)

# Budget Allocation & Bidding Strategy

## Process

1. Collect budget and performance data across all active platforms
2. Read `references/budget-allocation.md` for the platform selection matrix
3. Read `references/bidding-strategies.md` for per-platform decision trees
   and current AI bidding innovations
4. **Validate**: confirm spend data covers ≥14 days before evaluating kill/scale decisions
5. Evaluate budget allocation, bidding strategy, and scaling readiness
6. **Validate**: verify kill list candidates have sufficient data (≥20 clicks or ≥$100 spend) before recommending pause
7. Generate recommendations with kill list and scale list

## Budget Allocation Framework

### 70/20/10 Rule
- **70%** on proven channels (consistent ROAS/CPA targets met)
- **20%** on scaling channels (showing promise, need more data)
- **10%** on testing channels (new platforms, audiences, creatives)

Platform-by-business-type selection matrix (SaaS B2B, e-commerce, local
service, B2B enterprise, info products, mobile app, real estate, healthcare,
finance, agency) lives in `references/budget-allocation.md`.

### Budget Sufficiency Rules

| Platform | Minimum Daily | Learning Phase Budget |
|----------|--------------|----------------------|
| Google Search | $20/day | Sufficient for 15+ conv/month |
| Google PMax | $50/day | Sufficient for algorithm optimization |
| Meta | $20/day per ad set | ≥5x target CPA per ad set |
| LinkedIn | $50/day Sponsored Content | 15+ conversions/month |
| TikTok | $50/day campaign, $20/day ad group | ≥50x target CPA per ad group |
| Microsoft | No strict minimum | Sufficient for stable delivery |

## Bidding Strategy Evaluation

Match the bidding strategy to conversion volume and tracking maturity —
full per-platform decision trees (Google, Meta, LinkedIn, TikTok, Microsoft)
in `references/bidding-strategies.md`. Headline rule for Google:

- <30 conv/month → Maximize Clicks (cap CPC at benchmark)
- 30-50 conv/month → Maximize Conversions
- >50 conv/month → Target CPA
- Revenue tracking active + >50 conv/month → Target ROAS

Current AI bidding options worth evaluating (details and caveats in
`references/bidding-strategies.md`): Google AI Max for Search, TikTok Smart+
modular control, Apple Ads Maximize Conversions (GA Feb 2026), Meta
Advantage+ bidding.

## Scaling Assessment

### Ready to Scale (Green Light)
- CPA consistently below target for 2+ weeks
- ≥50 conversions per week (learning phase exited)
- CTR stable or improving
- ROAS above target
- No creative fatigue signals

### 20% Rule
Never increase budget by more than 20% at a time:
- Week 1: $100/day → $120/day
- Week 2: $120/day → $144/day
- Week 3: $144/day → $173/day
- Monitor 3-5 days after each increase for performance stability

### Scaling Methods
1. **Vertical**: increase budget on winning campaigns (20% rule)
2. **Horizontal**: duplicate winning campaigns to new audiences
3. **Platform expansion**: add budget on new platforms
4. **Geographic expansion**: test new markets/regions
5. **Format expansion**: test new ad formats on same platform

## Kill List Assessment

### 3x Kill Rule
- Any campaign/ad group with CPA >3x target → **flag for pause**
- Review spend in last 14 days with no conversions → **flag for pause**
- Creative with CTR >50% below platform benchmark → **flag for creative kill**

### Kill Decision Framework
| Scenario | Data Required | Action |
|----------|---------------|--------|
| CPA >3x target | ≥7 days data, ≥20 clicks | Pause immediately |
| No conversions | ≥$100 spend or ≥50 clicks | Pause and diagnose |
| CTR <50% of benchmark | ≥1,000 impressions | Kill creative, test new |
| ROAS <50% of target | ≥14 days data | Reduce budget 50% or pause |

## MER (Marketing Efficiency Ratio)

```
MER = Total Revenue / Total Marketing Spend
```

- Assess blended efficiency across all platforms
- Target MER varies by business: 3x-10x depending on margins
- Use MER to evaluate overall health, not just per-platform ROAS
- Incrementality testing recommended for MER accuracy

## Output

### Budget & Bidding Assessment

```
Budget Allocation Health

Allocation Strategy:  ████████░░  XX/100
Bidding Strategies:   ██████████  XX/100
Scaling Readiness:    ███████░░░  XX/100
Budget Sufficiency:   █████░░░░░  XX/100
```

### Deliverables
- `BUDGET-STRATEGY-REPORT.md`: Full allocation and bidding analysis
- Current vs recommended budget split (pie chart data)
- Bidding strategy recommendations per platform/campaign
- Scale list: campaigns ready for more budget
- Kill list: campaigns/ad groups to pause immediately

From ruca-radio/smartpowers, MIT.

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