Media plan and budget allocator by marginal ROAS
Where should the next rupee go? Allocate budget on what each channel returns at the margin, not on its average ROAS, and phase it around the year's demand peaks.
A flagship tool with Gran: free to use, and a free account saves your report as a PDF.
How it is calculated
Each channel gets a diminishing-returns curve fitted through today's spend and ROAS. The saturation setting decides how quickly returns fall as spend grows. Budget is then added in small steps, each step going to whichever channel returns the most for the next unit of spend, within any caps you set.
revenue(s) = a × s^b b = 0.85 low, 0.70 medium, 0.55 high saturation marginal ROAS = b × revenue(s) ÷ s Profit after ads = revenue ÷ break-even ROAS − spend
The profit-maximising budget is the total at which the last step's marginal ROAS equals your break-even ROAS. Monthly phasing follows typical demand for India or the US, weighted towards the big sale events.
Questions
What is marginal ROAS?
The revenue returned by the next unit of spend, rather than the average across all spend. A channel can show a 4x average ROAS while its last rupee returns 1.5x. Budget decisions should be made on the margin.
How should I split budget between Meta and Google?
Keep moving budget to whichever channel has the higher marginal ROAS until they are roughly equal, and stop adding budget when marginal ROAS reaches break-even. This tool does that allocation step by step.
How accurate are the response curves?
They are estimates from one data point per channel and a saturation assumption. Validate big shifts with a two to four week test at the new spend level before committing the year.
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