Budget allocation is how total marketing spend is divided between channels and funnel stages. The decision is made on incrementality and the growth target, not on the ROAS the channels report in their panels. The wrong allocation stops growth even when every individual campaign is performing well.
The common and dangerous pattern is budget drifting toward the retargeting campaigns showing the highest ROAS; those campaigns harvest existing demand, generate none, and exhaust the audience within a few months. The healthy approach is to protect the share allocated to new customer acquisition and track it as a separate line. A test budget should be carved out too: a small slice of the total goes to new channels, new creative and new audiences. Accounts with no test budget are left without a backup when the current setup tires out.
The common and dangerous pattern is budget drifting toward the retargeting campaigns showing the highest ROAS; those campaigns harvest existing demand, generate none, and exhaust the audience within a few months. The healthy approach is to protect the share allocated to new customer acquisition and track it as a separate line. A test budget should be carved out too: a small slice of the total goes to new channels, new creative and new audiences. Accounts with no test budget are left without a backup when the current setup tires out.
The common and dangerous pattern is budget drifting toward the retargeting campaigns showing the highest ROAS; those campaigns harvest existing demand, generate none, and exhaust the audience within a few months. The healthy approach is to protect the share allocated to new customer acquisition and track it as a separa…
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