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.
  Triggers on: "budget allocation", "bidding strategy", "ad spend", "ROAS target",
  "media budget", "scaling", "kill list"
---

# /ads budget — Budget Allocation & Bidding Strategy

> Cross-platform budget allocation, bidding strategy review, and scaling assessment.

## Usage

```bash
/ads budget
/ads budget --platforms google meta tiktok
```

## Process

1. Collect budget and performance data across all active platforms
2. Evaluate budget allocation against the 70/20/10 framework
3. Assess bidding strategy per platform and campaign
4. Determine scaling readiness and build kill list
5. Generate recommendations with MER analysis

## 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 |

### 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

### Deliverables
- `BUDGET-STRATEGY-REPORT.md` — Full allocation and bidding analysis
- Current vs recommended budget split
- 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