Marketing Budget Allocation
Distributes a total marketing budget across channels based on historical performance, target ROI, and strategic priorities. Outputs a recommended channel mix with expected returns and flags channels that are over- or under-funded relative to their performance.
Marketing - Marketing Budget Allocation.xlsx
Excel (.xlsx) — No macros — Works in Excel, Google Sheets, LibreOffice
What This Spreadsheet Solves
- Budget is split by gut feel rather than data-driven allocation
- No framework to compare channel ROI when deciding where to invest
- Difficulty balancing brand awareness spend against performance channels
- Cannot model how shifting budget between channels affects total return
- No audit trail for budget allocation decisions
Who This Is For
- Marketing directors setting quarterly budgets
- CMOs presenting budget proposals to the executive team
- Growth marketers optimizing channel mix
- Finance partners reviewing marketing spend requests
Inputs
- $Total Marketing Budget
- textChannel Name
- %Historical ROI per Channel
- $Minimum Spend per Channel
- #Strategic Priority Weight
Outputs
- Recommended dollar allocation per channel
- Percentage of budget per channel
- Expected return per channel at allocated spend
- Total expected portfolio ROI
- Over-/under-funded flags relative to ROI
- Optimal allocation suggestion based on ROI ranking
How Calculations Work
Each channel receives a weighted score combining historical ROI and the strategic priority weight you assign. Budget is allocated proportionally to these scores, subject to minimum-spend constraints. The sheet then projects expected return per channel by applying historical ROI to the allocated amount, and flags any channel where allocation share diverges significantly from its ROI share.
Example Use Case
Scenario: A company has a $50,000 monthly budget across four channels: SEO (historical ROI 320%), Paid Search (180%), Social Ads (90%), and Events (150%). SEO has a strategic weight of 3, Paid Search 2, Social Ads 1, Events 2.
Result: Recommended allocation: SEO $18,500 (37%), Paid Search $13,200 (26.4%), Events $11,800 (23.6%), Social Ads $6,500 (13%). Expected total return: $136,000. Social Ads flagged as low-ROI relative to its share.
What You Get — 5 Sheets
Technical Details
Frequently Asked Questions
What if I do not have historical ROI for a new channel?
Enter an estimated ROI based on industry benchmarks. The CONFIG sheet includes a toggle to mark estimates so they are visually distinct from actuals.
How do strategic priority weights work?
Weights are relative multipliers. A channel with weight 3 gets three times the allocation influence of a channel with weight 1, all else being equal.
Can I set a maximum spend per channel?
Yes. Add a max-spend value on the INPUT sheet. The LOGIC sheet will cap allocation at that amount and redistribute the excess.
Does this model account for diminishing returns?
Not by default. The model assumes linear returns at each channel's historical ROI. For diminishing returns, adjust the ROI estimate downward for channels receiving large increases.
How often should I re-run this allocation?
Quarterly is typical. Update historical ROI each quarter with actuals so the model reflects current channel performance.
Download Marketing Budget Allocation
Ready to use immediately. Enter your data in the INPUT sheet, see results in OUTPUT.