Guide
How to split an advertising budget across funnel stages
New advertisers tend to put everything on one step. A simple split, adjusted weekly from results, spreads the risk.
A starting split
For lead generation, 30 percent on awareness, 25 on interest, 35 on conversion and 10 on retargeting is a sensible start. For a new store with catalogue ads, 25, 25, 40 and 10. For win-back campaigns, skip awareness and put most of the budget on conversion and retargeting.
Start with conversion
Get the conversion step working first, since it is closest to money. Then add the earlier steps to feed it.
Adjust weekly
Each week, move a fifth of the budget from the weakest step to the strongest. Do not change more than one thing at a time or you will not know what worked.
Know your target cost per result
Work back from what a customer is worth to you. If a customer brings 50 in profit, paying 20 to win one is fine and paying 60 is not.
Put this into practice with Grotivo.
Get a budget split for your business