--- 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." user-invokable: false --- # 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. **Validate**: confirm spend data covers ≥14 days before evaluating kill/scale decisions 7. Evaluate budget allocation, bidding strategy, and scaling readiness 8. **Validate**: verify kill list candidates have sufficient data (≥20 clicks or ≥$100 spend) before recommending pause 9. 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 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 | N/A | N/A | ### 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 - **Manual CPC**: recommended starting point for cost control - **Cost Cap**: efficiency at scale with predictable CPA - **Maximum Delivery**: highest volume, most expensive. Use only for scale with established data - **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 - Manual CPC for low-volume campaigns (Enhanced CPC deprecated on Google March 2025; verify Microsoft availability before recommending) - Target CPA / Target ROAS for automated (requires 15+ conversions/30 days) ## v1.5 Bidding Innovations ### Google AI Max for Search - 14% conversion lift in early testing - Requires strong negative keyword lists (AI Max casts a wider net) - DSA likely consolidated into AI Max by Q2 2026 - Best for: accounts with mature conversion tracking and keyword history ### TikTok Smart+ Modular Control (2025) - Lock targeting, creative, budget, or placement independently (mix of manual and AI) - ROAS performance: 1.41-1.67x in early adopter data - Replaces all-or-nothing automation approach - Best for: advertisers wanting partial AI control without full black-box ### Apple Ads Maximize Conversions - GA: February 26, 2026. AI-powered auto-bidder for Apple Ads - Target CPA based on weekly average (not per-conversion) - Daily budget must be >=5x target CPA for stable performance - Two-week learning phase required; avoid changes during learning - Currently supports installs only (not post-install events) ### Meta Advantage+ Bidding - Automatic optimization across all placements within Advantage+ Sales campaigns - Budget automatically shifts to highest-performing placements in real time - Best combined with broad targeting and high creative volume ## 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 - MER analysis and trend - Quick Wins for immediate budget optimization