Purpose #
This article explains how Shopstars manages advertising budgets and scaling across platforms. It covers how budgets are allocated, how spend is controlled, how scaling decisions are made, and how clients are kept informed. The objective is to ensure ad spend is invested efficiently and that campaigns grow sustainably without wasted resources.
Budget Allocation Framework #
Budgets are always tied to campaign objectives. Shopstars divides spend into three primary stages of the funnel:
Prospecting
Largest share of budget, typically 60–70%. Used to acquire new potential customers. Campaigns are built around broad or lookalike audiences with strong creative hooks.
Retargeting
Smaller share of budget, typically 20–30%. Focused on users who visited the site, added products to cart, or engaged with content but did not convert. Retargeting ads emphasize urgency or value to close the sale.
Retention
Remaining share, typically 10–20%. Targets past buyers with upsells, cross-sells, or loyalty offers. Retention campaigns maximize lifetime value and reduce dependency on new customer acquisition.
Allocation ratios are customized per client depending on store maturity, product type, and historical performance.
Budget Setting by Platform #
Meta
- Budgets are set at the campaign level for stability.
- Campaign Budget Optimization (CBO) is used when multiple ad sets compete.
- Prospecting campaigns receive the largest share, retargeting and lookalikes are smaller but highly efficient.
Google Ads
- Search campaigns receive dedicated budgets to control keyword-level spend.
- Shopping and Performance Max campaigns are capped to avoid overspending during testing.
- Retargeting is tightly controlled to avoid frequency fatigue.
TikTok
- Budgets are tested in small increments due to rapid creative fatigue.
- Scaling relies on frequent creative refresh rather than simply increasing spend.
Scaling Strategy #
Step 1: Validation
Campaigns are launched with conservative budgets to validate audience and creative performance. Key metrics include cost per acquisition (CPA), return on ad spend (ROAS), and conversion volume.
Step 2: Incremental Scaling
Budgets are increased gradually once campaigns show stability. Increases are typically limited to 20–30% every few days to avoid algorithm resets on Meta and TikTok. On Google, budgets can be raised more aggressively if impression share is limited.
Step 3: Diversification
Scaling does not rely solely on increasing spend in one campaign. Shopstars expands into new audiences, creatives, or platforms once initial campaigns reach saturation.
Step 4: Monitoring
Scaling is monitored closely to detect diminishing returns. If CPA rises beyond acceptable thresholds, scaling is paused and budgets are reallocated.
Budget Controls #
To prevent wasted spend, Shopstars applies:
- Daily and lifetime caps on campaigns
- Frequency monitoring to avoid overexposure in retargeting
- Bid strategies such as Target CPA or Maximize ROAS on Google
- Automated alerts for unusual spend spikes
Reporting to Clients #
Budget allocations and adjustments are documented in Basecamp. Weekly reports show:
- Spend by platform and campaign
- Cost per click (CPC), CPA, and ROAS
- Scaling decisions taken during the week
- Planned adjustments for the following week
Clients approve significant budget increases in Basecamp before they are applied.
Client Involvement #
Clients are expected to:
- Approve initial budgets during campaign setup
- Review scaling recommendations in Basecamp
- Notify Shopstars of any budget constraints, seasonality, or promotions that require changes
Summary #
Budgeting and scaling at Shopstars follow a structured framework. Spend is divided across prospecting, retargeting, and retention, tailored to each platform. Scaling is done incrementally to preserve algorithm stability and profitability. Budgets are tightly controlled, monitored daily, and reported weekly in Basecamp for transparency. This ensures that growth is sustainable and aligned with client goals.
