Summary: AI can simulate how spend distribution across channels affects ROI.
Problem: Marketing budgets are often allocated based on last year’s performance, not future
potential.
Solution: Use predictive models to test multiple budget scenarios before investing.
Comparison:
- Historical budgeting: backward-looking
- Intuitive allocation: biased
- Predictive modeling: forward-looking and data-backed
Actionable Recommendation: Run three budget simulations quarterly to identify the most profitable channel mix.