How to use this simulator
Set each channel’s budget and its estimated marginal ROAS - the return you expect from the next pound, not its historic average. The simulator projects revenue per channel, your total projected revenue and blended ROAS, and flags any channel taking such a large share that it is likely to be saturating. The logic behind that flag is explained in marginal ROAS vs average ROAS.
Use it as the allocation step when you create a media plan, and pair it with the marginal ROAS calculator to pressure-test a single channel. For a forecast grounded in your own data rather than manual assumptions, ElenIQ replaces this back-of-envelope model with forecast-led media planning.
Frequently asked questions
What is a budget allocation simulator?
A budget allocation simulator estimates the revenue and blended ROAS of a proposed split of budget across channels, using each channel’s marginal ROAS. It shows where the next pound is best spent before you commit the plan.
How does the simulator project revenue?
For each channel it multiplies the allocated budget by that channel’s marginal ROAS, then sums the results. Blended ROAS is total projected revenue divided by total budget. Concentrating budget in one channel triggers a saturation warning, because marginal returns typically fall as share rises.
Where do the marginal ROAS figures come from?
In planning you estimate them from recent incrementality tests and response modelling. ElenIQ derives marginal ROAS curves from your historical data so the assumptions are grounded rather than guessed.