Complete the sentence to define data-driven budget allocation.
Data-driven budget allocation means allocating marketing budget based on [1] rather than intuition.Data-driven budget allocation uses data analysis to decide how to spend marketing money effectively.
Complete the sentence to identify a key metric used in data-driven budget allocation.
A common metric to evaluate marketing channels is [1], which measures the return on investment.
ROI (Return on Investment) shows how much profit is made compared to the money spent, helping decide budget allocation.
Fix the error in the statement about budget allocation.
To optimize budget, marketers should allocate more funds to channels with [1] ROI.
Channels with a higher ROI generate more profit per dollar spent, so they deserve more budget.
Fill both blanks to complete the formula for calculating ROI.
ROI = ([1] - [2]) / [2]
ROI is calculated by subtracting Cost from Revenue, then dividing by the Cost.
Fill all three blanks to complete the sentence about budget adjustment.
If a channel's [1] is [2] than expected, marketers should [3] its budget.
If a channel's performance is better than expected, marketers should increase its budget to maximize returns.