budget-optimization

Calculate an Efficiency Index (actual ROAS divided by target ROAS) for each channel, then cut channels below 0.7 for two or more periods and increase channels above 1.3 with scaling headroom. Model conservative and aggressive scenarios before committing.

Compare each channel's Efficiency Index, pipeline dollars per dollar spent, and diminishing-returns signals. Channels underperforming target ROAS for multiple periods are cut candidates, while efficient channels with headroom get increases.

Not always. Apply strategic overlays first: brand awareness channels should not be judged on direct ROAS alone, new experiments need at least 90 days, and channels with 60-90 day attribution lag may be undervalued by current data.

You need current monthly spend per channel plus ROAS, CPA, pipeline contribution in dollars, and MQL volume. Historical performance over multiple periods is also required to detect trends and diminishing returns.

Pure ROAS math ignores brand-building effects, attribution lag, seasonality, and new-channel ramp time. The method compensates with strategic overlays, but projections still depend on assumptions about historical performance holding true.