MBA DM Phase 2: The Agency Simulation
Session 10
Budget Rationale & Risk/Compliance Frameworks
Defending spend like an agency account manager.
Today's Agenda
- Budget allocation models
- Risk & compliance checklist
- Data privacy & platform policy basics
- Lab: build your budget rationale
- Deliverable: Budget table + risk memo (A1 input)
Why "Just Split It Evenly" Fails
Clients ask: "Why NPR X on Search vs. NPR Y on Social?" A defensible answer ties budget to funnel stage and expected CAC — not gut feeling.
A Simple Allocation Model
Acquisition-heavy
New brand, no email list yet: 70% acquisition (Search + Social Ads), 30% retention.
Retention-heavy
Existing customer base: 40% acquisition, 60% retention (email, remarketing).
Risk & Compliance Checklist
- Ad platform policy compliance (health, finance claims restrictions)
- Data privacy: consent for email lists, no scraped contacts
- Budget overspend guardrails (daily caps)
- Brand safety: placement exclusions
Case Reference
Recall Session 8's capstone budget framing and the CRO bookstore case for how a small, disciplined budget was justified with data.
Lab: Build Your Budget Rationale
- Allocate your total budget across channels with % justification
- Write 3 risk/compliance items specific to your business
- State your daily spend guardrail
Deliverable for Session 10
Budget Table + Risk Memo
Feeds directly into your A1 Campaign Strategy Deck.