Marketing Mix Allocator
Spread a budget across channels using diminishing-returns response curves. The optimiser allocates every incremental dollar to whichever channel still returns the most marginal CPA at that spend level. Produces the mix that maximises expected conversions.
PPC Intelligence
Last year's ROAS is not next quarter's ROAS: every channel has a saturation curve.
Marketing teams usually allocate budget by last-period CPA, which assumes performance stays flat as you pour more money in. It doesn't. Every channel saturates. This allocator uses a simple diminishing-returns curve (CPA rises as spend rises) and solves for the mix where marginal CPA across channels is equal: the mathematically optimal split.
Total budget
Channels (current spend + current CPA / AOV)
Channel
Current spend
Current CPA
AOV
Min
Max
Optimised result
Expected conversions
–
Expected revenue
–
Blended CPA
–
Blended ROAS
–
Uplift vs flat allocation
Model
Conversions_channel = k × spend^α where α is the saturation exponent (0.3 to 0.5).
k is calibrated to each channel's current spend + current CPA.
The optimiser finds the spend vector that maximises total conversions (or revenue) subject to the budget and per-channel min/max caps.
Recommended allocation
Channel
Share
Spend
Change
CPA
Conversions
Frequently asked questions
What does this tool do?
Allocates a total marketing budget across channels using diminishing-returns response curves. Finds the mix that maximises expected conversions.
What is the saturation curve?
The mathematical shape describing how additional spend produces diminishing returns in a channel. Modelled as spend^alpha with alpha between 0.3 and 0.5.
Why does spend saturate?
Limited audience. Channel-level ad inventory. Audience fatigue. Economic law of diminishing returns applies to every ad channel at some scale.
What is alpha calibrated to?
Empirical studies of marketing response curves. 0.5 is mild saturation (large markets), 0.3 is steep (small markets or saturated channels). 0.4 is a reasonable default.
How does the optimiser decide allocation?
For each additional dollar of budget, assigns it to whichever channel has the highest current marginal return. Iterates until budget is spent.
What are the min and max constraints?
Floor and ceiling for each channel. Keeps the optimiser from going to zero on a channel (brand, email) or over-allocating to an untested one.
Does the tool account for cross-channel effects?
No. It treats each channel independently. For cross-channel modelling use proper MMM (Robyn, Meridian).
How is this different from attribution?
Attribution assigns credit for conversions that happened. This tool forecasts conversions under different budget mixes. Forward-looking.
What inputs do I need?
Current spend and current CPA per channel. The tool calibrates response curves from those.
Can I compare multiple scenarios?
One run at a time. Save the allocation, change inputs, run again.
How accurate are the forecasts?
Directional. The optimiser gets the shape right but absolute numbers depend on your real response curves which can only come from testing.
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