How to Allocate Your Marketing Budget for Maximum Return?
Putting Eggs in One Basket is Marketing Suicide
If all your sales come from a single platform (e.g., TikTok ads), the moment the platform changes its algorithms or bans your ad account, your company's sales will stop completely in one day! Diversification is the solution.
The Golden 70-20-10 Rule:
70%: For Proven Channels (The Bread & Butter)
Put 70% of your budget into channels that are proven to be successful and you know their exact return (e.g., Google Search ads, and Meta retargeting). This part is what pays the company's bills and employees' salaries.
20%: For Expanding Promising Channels (The Scaling Zone)
Allocate 20% to experiment with channels that showed initial signs of success and you want to explore deeply, such as: collaborating with Influencers, or Search Engine Optimization (SEO). These channels are the future growth of your company.
10%: For Crazy Experiments (The Wildcard)
Allocate 10% to completely new marketing ideas with unguaranteed outcomes. An ad in a new podcast, sponsoring a local event, or trying a modern ad platform. This percentage won't destroy your budget if it fails, but if it succeeds, you might discover a "gold mine" your competitors don't know about yet.
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