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Attribuly Budget Allocation Thesis: Based on funnel stages

90% of campaigns target ROAS only

 

 

However, this method is far from optimal. Attribuly takes into consideration the allocation of your budget across all stages of the funnel, allowing you to construct a robust and high-performing funnel.

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As your store has grown, budget allocation has become your major challenge

With limited budgets and limited time and resources, the pressure is on. Adding to this challenge are the increasing CPCs. Whether you aim to expand your market share or sustain profitability, it's crucial for most brands to explore omnichannel marketing to achieve future success.

Allocation by channel

This strategy aims to assess the contribution of a specific channel's gross revenue to the brand's overall revenue in terms of percentage.

  • This approach only looks backward instead of looking ahead to predict profitability and growth.
  • This method forces brands to search for more channels continuously. 

Allocation by ROAS

Brands have the power to pinpoint the specific metrics they aim to achieve and strategically allocate portions of their retail budgets across various channels, types of advertisements, and funnels based on the performance of these metrics.

While this allocation method by metrics can undoubtedly enhance predictability and ensure consistent profit margins, it does come with a significant drawback – it sets a prominent upper limit on growth.

It's time to upgrade your allocation by funnel stages

budget allocation -1

The marketing funnel unveils the strategies employed to inspire specific outcomes during the customer's journey towards purchasing your product: creating awareness, fostering engagement, and ultimately leading to a transaction.

Present your marketing budget to executives within the context of your goals and strategic plan for the year. Introduce four categories of objectives: establishing genuine awareness, encouraging consideration, promoting transaction, and below that, fostering loyalty. Then, outline each tactic and its corresponding percentage of the budget, demonstrating the allocation based on brand goals.

In today's ever-evolving retail marketing landscape, brands often find themselves inundated with copious amounts of data and a myriad of metrics from various platforms.

This overwhelming influx of information can easily distract us from accurately assessing the effectiveness of our efforts at each stage of the funnel. To combat this, we encourage a renewed focus on the fundamental digital marketing KPIs.

Stage Main KPI Cost-related KPI
Awareness(Don't know your brand) Impressions Cost per thousand impressions(CPM)
Consideration(Engaged but haven't visited website) Clicks Cost per click(CPC)
Conversion(Website visitors) Purchase Cost per acquisition(CPA)
Retention(People who purchased from you) Purchase/Retention Cost per acquisition(CPA)

 

 

Key points to consider

While allocating ad spend by funnels stage may be intuitively logical, there are some real-world limitations that practitioners need to navigate.

  • Attribution and accuracy. There is a large discrepancy between how various retailers process things like attribution windows and conversion signal loose, which can lead to significant variations in stated performance. 

  • Availability of data from each channel. Certain marketing platforms may have limited access to data or may choose to offer more advanced reporting features only to a select group of advertisers.

  • Organizational silos. In the realm of larger organizations, a notable absence of intelligence sharing often hinders the potential benefits that would otherwise enhance e-commerce advertising. Leveraging past marketing performance has the potential to yield substantial gains in efficiency and effectiveness.

 

All tactics can't run without great data.

Attribuly provides us with insightful attribution models that enable us to adjust and experiment with the credit allocation for each sale. This empowers us to evaluate every channel in our omnichannel marketing strategy and identify the most effective ones.

Furthermore, Attribuly offers a substantial advantage of not having to rely on the platform's numbers. With the ability to monitor and report actual ROAS figures, we can efficiently optimize and amplify ads and platforms that are successful.

Finn
CEO of TexTale

Build your funnel budget insight

Attribuly is your solid tool of this approach

Attribuly offers a comprehensive solution to elevate your budgeting process, equipping you with all the necessary tools and resources.

  • Utilize our cutting-edge independent pixel technology to identify and resolve any inconsistencies that may arise across various platforms.
  • Attribuly seamlessly integrates all of your advertising platforms via advanced authority, allowing you to effortlessly track real-time cost-related KPIs and main KPIs. Moreover, Attribuly streamlines your adjustment process by automating it for you.
  • Attribuly enables you to effortlessly monitor the performance of your advertisements, influencers, social media presence, and all your campaigns. With Attribuly, your entire team can access one central source of truth, ensuring seamless collaboration and accurate insights.

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