How to Use the Budget Allocator in Cassandra

The Budget Allocator in Cassandra is a powerful tool designed to optimize media spend by leveraging historical performance data, identifying diminishing returns, and maximizing return on investment (ROI).

This guide provides a step-by-step overview of how to use the Budget Allocator effectively.

1. What is the Budget Allocator?

Purpose

• Helps marketers determine the optimal budget allocation across channels.

• Identifies diminishing returns to prevent over-investing in low-efficiency channels.

• Provides data-driven recommendations for maximizing campaign effectiveness.

Key Benefits

• Ensures efficient spend distribution based on past performance.

• Allows scenario planning to simulate different budget strategies.

• Reduces manual effort in optimizing media mix decisions.

2. How to Access the Budget Allocator

1. Log in to Cassandra and navigate to the Optimization Dashboard.

2. Click on Budget Allocator from the menu.

3. Choose the relevant time period for your optimization (weekly, monthly, quarterly).

3. Configuring the Budget Allocator

Step 1: Define Your Budget Constraints

• Enter your total budget for the selected period.

• Set minimum and maximum budget constraints for each channel to control allocations.

Step 2: Select Performance Metrics

• Choose key performance indicators (KPIs) such as:

  • Return on Ad Spend (ROAS)

  • Customer Acquisition Cost (CAC)

  • Revenue Growth

  • Conversions

Step 3: Run the Budget Optimization

• Click Run Optimization to allow Cassandra’s algorithm to compute the optimal spend distribution.

• Review the system-generated recommendations and adjust constraints if needed.

4. Interpreting Budget Allocator Results

Key Outputs

• Suggested Budget Allocation: Optimal distribution across channels.

• Projected Impact on KPIs: Expected performance based on recommended budget changes.

• Diminishing Returns Warning: Identifies channels that may not benefit from additional spend.

• Confidence Intervals: Provides a range of expected outcomes based on historical variability.

Example Output Table

5. Adjusting and Applying the Allocator’s Recommendations

Scenario Planning

• Adjust budget constraints to explore different allocation scenarios.

• Run multiple optimizations to compare results before finalizing a budget plan.

Applying the Recommended Allocations

• Export the optimized budget plan for stakeholder review.

• Update media buying plans based on Cassandra’s recommendations.

• Track performance and iterate based on real-time results.

6. Best Practices for Using the Budget Allocator

• Run optimizations regularly (e.g., monthly or quarterly) to adapt to market changes.

• Consider confidence intervals when making final budget allocation decisions.

• Use incrementality testing to validate budget shifts before implementing major changes.

• Compare multiple scenarios to find the best balance between growth and efficiency.

7. Summary & Next Steps

• The Budget Allocator helps marketers optimize spending based on historical performance and expected returns.

• It provides data-driven recommendations to maximize ROAS and minimize waste.

• Regularly reviewing and adjusting allocations ensures continued marketing efficiency.