Paid Media Budget Allocation: A Practical Model for Search, Social, and Retargeting

Most paid accounts underperform for one reason: budget is distributed by habit, not by funnel role.

Separate Budget into Three Buckets

• Demand capture: high-intent search terms and bottom-funnel audiences
• Demand creation: prospecting and awareness campaigns
• Retargeting: users who engaged but did not convert

This structure makes tradeoffs visible and prevents over-investment in a single channel.

Suggested Starting Allocation

For most service businesses:

• 50-60% demand capture
• 25-35% demand creation
• 10-20% retargeting

Adjust after two to four weeks based on lead quality and conversion efficiency.

Channel Guidance

• Google Ads: strongest demand-capture surface for active intent
• Meta Ads: efficient for audience expansion and creative testing
• LinkedIn Ads: higher CPC but useful for narrow B2B targeting

The right mix depends on margin profile, sales cycle length, and close-rate by source.

Measurement Rules

• Validate tracking before scale
• Report on qualified leads, not just form fills
• Compare CAC by campaign objective
• Track assisted influence in longer sales cycles

Budget allocation works best when creative testing, offer strategy, and funnel-stage segmentation are managed as one system.