🔥 Tier 1 - Must KnowID: budgetAllocationFrameworks
Budget Allocation Frameworks
How marketing spend is distributed across channels and funnel stages
In Simple Words (Zero Jargon):
Deciding what percentage of your total advertising money goes to getting new people interested vs closing sales with people who already know you.
Why It Is Critical
Budget allocation is the highest-stakes decision in media planning. Putting 90% into bottom-of-funnel retargeting produces great short-term CPA while starving the pipeline of future buyers. Putting 70% into top-of-funnel awareness builds recognition without immediate sales.
Calculation Example & Benchmark Matrix
| Funnel Stage | Typical Budget Range (India D2C) | Channel Mix Examples |
|---|---|---|
| Top of Funnel (TOFU) | 15-25% of total budget | Meta video/Reels, YouTube, Display, Influencer content amplification |
| Middle of Funnel (MOFU) | 20-30% of total budget | Meta prospecting, Google non-brand search, LinkedIn (B2B) |
| Bottom of Funnel (BOFU) | 40-55% of total budget | Google branded search, Meta retargeting, Email, Shopping, WhatsApp |
| Brand / Always-On | 5-10% of total budget | Consistent brand presence to protect Share of Voice (SOV) |
'Budget allocation is not a maths problem - it is a strategic judgement about where the biggest opportunity is in the funnel right now. Start with the objective, not the spreadsheet.'
What You Get: A channel investment strategy aligned to where the funnel most needs it - rather than a default split based on habit or platform familiarity.