Channel allocation
Move the next rupee to the channel with the best incremental return.
Quick learn
A fictional D2C brand can move ₹50,000 between search and creators. Historic average contribution is ₹1.30 per rupee in search and ₹1.10 in creators. Current marginal estimates are ₹0.80 in search and ₹1.05 in creators.
Deep dive
Average returns describe spending that has already happened. Marginal returns estimate what additional spending buys. Saturation, attribution overlap and capacity can change the ranking. Compare contribution on a consistent horizon.
Worked decision
Move ₹50,000 from the marginal search tranche to creators. Expected change is ₹50,000 × (₹1.05 − ₹0.80) = ₹12,500 before switching costs.
When the decision changes
If creators can absorb only ₹20,000 at ₹1.05, reallocate at most ₹20,000 at that rate. A creator holdout or phased budget change can estimate whether the expected lift is real.