/ads-budget

name: ads-budget
description: >
  Budget allocation and bidding strategy review across all ad platforms.
  Evaluates spend distribution, bidding strategy appropriateness, scaling
  readiness, and identifies campaigns to kill or scale. Uses 70/20/10 rule,
  3x Kill Rule, and 20% scaling rule. Use when user says "budget allocation",
  "bidding strategy", "ad spend", "ROAS target", "media budget", or "scaling".
disable-model-invocation: true

Budget Allocation & Bidding Strategy

Process

1. Collect budget and performance data across all active platforms 2. Read `ads/references/budget-allocation.md` for allocation framework 3. Read `ads/references/bidding-strategies.md` for strategy decision trees 4. Read `ads/references/benchmarks.md` for CPC/CPA benchmarks 5. Read `ads/references/scoring-system.md` for health score algorithm 6. Evaluate budget allocation, bidding strategy, and scaling readiness 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 Selection Matrix

| Business Type | Primary | Secondary | Testing | |---------------|---------|-----------|---------| | SaaS B2B | Google Search, LinkedIn | Meta, YouTube | TikTok, Microsoft | | E-commerce | Google Shopping, Meta | TikTok, YouTube | Microsoft, LinkedIn | | Local Service | Google Search, Google LSA | Meta | Microsoft, YouTube | | B2B Enterprise | LinkedIn, Google Search | Meta | Microsoft, TikTok | | Info Products | Meta, YouTube | Google Search | TikTok | | Mobile App | Meta, Google UAC | TikTok | Apple Search Ads | | Real Estate | Google Search, Meta | YouTube | Microsoft | | Healthcare | Google Search | Meta | Microsoft, YouTube | | Finance | Google Search, Meta | LinkedIn | Microsoft | | Agency (clients) | Varies by client | — | — |

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

Google Ads Bidding Decision Tree

Start
├─ <30 conversions/month?
│  └─ Use Maximize Clicks (cap CPC at benchmark)
│     └─ When >30 conv/month → Maximize Conversions
├─ 30-50 conversions/month?
│  └─ Use Maximize Conversions
│     └─ When stable CPA → Target CPA
├─ >50 conversions/month?
│  └─ Use Target CPA
│     └─ When revenue tracking → Target ROAS
└─ Revenue tracking active + >50 conv/month?
   └─ Use Target ROAS

Meta Ads Bidding

• **Lowest Cost (default)**: best for volume, may have CPA variance
• **Cost Cap**: sets CPA ceiling, may reduce volume
• **Bid Cap**: maximum bid per auction, most control
• **ROAS Goal**: target return on ad spend
• **CBO vs ABO**: CBO for proven campaigns, ABO for testing

LinkedIn Bidding

• **Cost Per Send (CPS)**: for Message Ads
• **Maximum Delivery**: for Sponsored Content (recommended)
• **Manual CPC**: for tight budget control
• **Target Cost**: for predictable CPA

TikTok Bidding

• **Lowest Cost**: maximize conversions within budget (volume)
• **Cost Cap**: set maximum CPA (efficiency)
• **Bid Cap**: maximum bid per impression
• Budget ≥50x CPA per ad group for learning phase exit

Microsoft Bidding

• Mirror Google strategy but bid 20-35% lower
• Enhanced CPC for manual campaigns
• Target CPA / Target ROAS for automated

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 s