When To Use Cross-Channel Optimisation
Cross-channel optimization is a powerful strategy that you can employ when you’re either meeting or exceeding your blended targets but are faced with budget constraints. If you find yourself needing to reallocate bydget from one channel to another without increasing your overall budget, this approach can help you maximize efficiency and improve your performance.
How To Use Fospha For Cross-Channel Optimization
🚀 Ready to maximize cross-channel efficiency?
Follow the steps below or dive into this Product Tour!
Start With Blended Performance (KPI Health Check)
To get the most out of Fospha data, it’s essential to understand how your blended performance is tracking against your targets. Focusing on Blended ROAS gives you a clearer picture of your overall marketing spend across all channels.
Evaluate Performance Against Targets
If You're Hitting Blended Targets:
Enhance the performance of channels already exceeding targets to create more opportunities for scaling up your most successful efforts.
If You're Missing Blended Targets:
Direct your optimization efforts towards channels that are underperforming relative to your targets. Use this guide to learn how to perform in-channel optimization using Fospha.
Analyzing Channel Efficiency in Channel Health Check
Use Channel Health Check to evaluate how your paid media channels are performing against targets. Use this guide on how to use Channel Health Check.
Navigate to the Channel Health Check.
Set Date Ranges for comparison: Examples of how to choose the right date ranges: https://help.fospha.com/en/articles/9824121-yoy-analysis-with-fospha
Filter for a specific market you want to analyze or select 'All' for an overall blended view of your paid media channels.
Filter for Paid Media to focus exclusively on your paid media marketing efforts.
Analyze performance against paid targets: The main focus here is to see whether your channels are hitting or missing their targets. This gives you a straightforward view of what's working and what needs attention. This high-level view helps simplify decision-making and avoids over-complicating the analysis with too many metrics.
Consider Share of Spend, ROAS, and Share of Conversions: While performance against target is critical, it’s equally important to consider other metrics like shifts in share of spend, ROAS, and share of conversions. If a channel is contributing a significant portion of overall conversions—even if it's not hitting its paid targets—you may still want to maintain or even increase spend. A channel's high share of conversions indicates that it plays a critical role in driving volume, so reducing spend too quickly could disrupt overall performance.
Assess Channel Segment Performance: Scroll down to Performance by Campaign Objective to determine which channel segments are driving the most performance and validate where to focus budget shifts.
Identifying Scaling Opportunities in Spend Strategist
Once you have identified a channel segment to optimize for in Channel Health Check, make sure to pick the same one in Spend Strategist to understand potential for scale.
Spend Strategist is a robust budgeting tool designed for marketers to forecast and rationalize budget allocations across channels by predicting essential metrics, including ROAS, new conversions, and revenue, at varying spend levels. Utilizing historical spend data, it provides actionable insights to maximize marketing efficiency and impact.
In this example, we are looking at Meta Advantage Plus to validate whether it has room for scaling:
Switch "Show Data Points" on to understand the data behind your Saturation Curves. Each data point shows the daily spend vs. conversions, new conversions or revenue data based on Fospha Model outputs for each of your selected Channel Segment.
Easily view the maximum tested spend for each channel segment to support your budget increases. Use this line as a reference when pushing budgets past tested levels to ensure decisions are informed by factors like learning priods. We generally recommend to explore the part of Saturation Curve behind Maximum Observed Spend as it ensures we have more confidence in giving you budget recommendations.
Look for the pink line to understand what's your Last 7 Day Average of spend was like for the selected channel segment!
By clicking on different parts of the curve, you could see how your predicted Revenue/ROAS/Conversions would change in line with the change in your budget.
This is where you could define how much room you have for scale while staying within your ROAS target!
As you could see, increasing your daily budget to £366 could increase your Meta Advantage Plus ROAS to 14.5 and predicted daily revenue to £5k!
Even if you 6x your daily spend from now, you could still stay within your paid target, but make sure to account for more risk associated with a huge increase in spend.
We generally recommend incremental spend increases to ensure there's enough time to observe positive changes!
You could always refer to this Insight tab to assess the lower and upper bound of your budget decisions!
Understanding Spend Strategist Curves
Saturation Curve: The saturation curve illustrates the relationship between spend and predicted revenue, helping users identify the optimal spending range to achieve or surpass target ROAS.
Green Line: Represents the forecasted revenue response as spend increases, showing the point at which additional spend yields diminishing returns.
Yellow Dotted Line: Indicates the target ROAS for paid channels, serving as a benchmark for effective spend.
Red Vertical Line (Daily Avg Last 7 Days): Highlights the average daily spend over the past 7 days, offering a recent spending reference point.
Blue Vertical Line (Saturation Point): Marks the threshold where increasing spend does not substantially improve revenue or efficiency, guiding marketers to avoid over-investment in diminishing returns.
Insightful Prediction Ranges with AI-Powered Spark Insights: The Spend Strategist now leverages AI to offer dynamic prediction ranges instead of single-point estimates. Through the AI-powered Spark Insights pop-up, users receive contextual guidance on the most likely outcomes and potential risks when adjusting budgets, enabling data-backed decision-making with confidence.
Maximum Observed Spend Indicator: Each channel segment now displays the maximum tested spend, allowing marketers to push budgets incrementally while following Fospha’s best practices. This feature provides clarity on spend limits based on historical data, helping avoid inefficiencies and account for factors like learning periods when moving beyond tested budgets.
Understanding the RAG Status System in Spend Ranges
Once you select a spend level, Fospha displays a range of predicted outcomes associated with the low, most likely, and high outcomes for metrics such as conversions, new conversions, or revenue. Each of these predictions is accompanied by a RAG status indicator:
Red: Below target, highlighting a significant risk of underperformance.
Amber: Near target, indicating moderate risk and potential for improvement.
Green: On or above target, suggesting strong performance.
The scale of the RAG status is dynamically adjusted based on your overall performance over the last 90 days, allowing you to consider blended performance as context when planning your next steps. This system provides a quick visual guide to help you assess the potential impact of your spend adjustments more effectively.
Analyzing Underperforming Channels
Once you have decided which channel segment to scale and by how much, go back to Channel Health Check to see if you could unlock and reallocate more budget from existing channels that currently underperform.
Continue analyzing channel performance against targets and alongside their Share Of Spend to spot opportunities for budget reallocation!
Once you have identified channels for scale and optimization, go to Optimization Dashboard to drill down to campaign, ad set and ad level!
Try It Yourself
Head over to Fopsha now to check which of your budget could be optimized across channels for better results: