With advertising costs rising across every platform, strategic budget allocation has never been more important. The difference between a profitable campaign and a money pit often comes down to how you distribute your spend—not just how much you spend.
The 70-20-10 Framework
70% — Proven Channels: Allocate the majority of your budget to channels with demonstrated ROI for your business. These are your workhorses that consistently deliver results.
20% — Growth Channels: Invest in channels showing promise but not yet fully proven. These are your scaling opportunities.
10% — Experimental: Reserve a portion for testing new platforms, formats, or audiences. This is how you discover your next growth channel.
Platform-by-Platform Considerations
Google Search: Best for capturing high-intent demand. Allocate more here if your product solves a problem people actively search for. Expect higher CPCs but stronger conversion rates.
Meta (Facebook/Instagram): Ideal for visual products and impulse purchases. Strong for prospecting and retargeting. Budget for creative production alongside media spend.
TikTok: Lower CPMs make it attractive for awareness. Best for brands targeting audiences under 40. Creative refresh costs are higher due to faster ad fatigue.
LinkedIn: Premium pricing but unmatched B2B targeting. Worth the investment if your customer lifetime value supports the higher acquisition costs.
Seasonal Budget Adjustments
Don't distribute budget evenly across months. Increase spend during peak demand periods and pull back during slow seasons. Analyze your historical data to identify patterns and plan accordingly.
The Retargeting Imperative
Allocate 15-25% of your total ad budget to retargeting. These campaigns target people who've already shown interest, delivering significantly higher conversion rates at lower costs than prospecting campaigns.
When to Increase Budget
Scale spend when your ROAS exceeds your target consistently for 2+ weeks, you've identified winning creative and audiences, and your conversion infrastructure can handle increased volume. Scale gradually—increase by 20-30% at a time to maintain performance.
When to Cut Budget
Reduce or pause spend when ROAS drops below breakeven for 7+ days despite optimization, a platform's algorithm changes significantly impact your performance, or seasonal demand drops and CPAs rise unsustainably.
Tracking and Rebalancing
Review platform performance weekly and rebalance monthly. Use a unified dashboard that shows spend, revenue, and ROAS across all channels. This prevents the common mistake of optimizing each platform in isolation.
Your budget allocation should be a living strategy, not a set-it-and-forget-it plan. The brands that win are those that move budget fluidly toward what's working and away from what isn't.