Your budget is $10,000/month. You split it equally across 5 campaigns. Campaign A generates 10:1 ROAS. Campaign B generates 1:1 ROAS.
Why do they get equal budgets? They shouldn't.
Performance-Based Allocation
Allocate to what works. High-performing campaigns get more budget. Underperforming campaigns get budget cuts or paused entirely.
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1. Measure ROAS by campaign (monthly). 2. Rank campaigns by ROAS. 3. Increase budget to top 3 campaigns. 4. Cut budget from bottom 2. 5. Reallocate as needed. 6. Repeat monthly.
Testing Budget
Reserve 10–15% for testing new campaigns, keywords, ad variations. This budget generates learnings that improve the core 85%.
Dynamic Allocation
If budget is limited, use Google's campaign budget optimization to shift money to top performers automatically. It's not perfect but saves manual work.
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Start Your Free Trial →FAQ
How often should I reallocate budget?
Monthly at minimum. If data moves quickly, weekly.
What if a campaign has only 2 weeks of data?
Don't cut yet. Give it 30 days minimum. Campaigns need time to optimize.
Should I kill underperforming campaigns immediately?
No. Cut budget gradually. Monitor for 2–3 months before full cut.
How do I know if a campaign will improve?
Look at trends. If improving week-to-week, give more time. If declining, cut it.
