SOP: Paid Channel Selection & Budget Allocation

Purpose

To define a standardized process for choosing the right paid channels and allocating budgets effectively across the funnel.

This ensures ad spend is aligned with ICP personas, funnel stages, and business goals, avoiding wasted investment.

Scope

• Applies to all client types (B2B SaaS, B2C services, eCommerce, retail).
• Used by Performance Marketing Managers, Paid Ads Specialists, and Marketing Strategists.
• Covers channel selection, budgeting, and funnel alignment before campaign planning.

Objectives

• Select channels that match ICP persona behaviors.
• Allocate budgets across TOFU, MOFU, BOFU funnel stages.
• Define budget distribution rules (platform mix, test vs scale, geo-split).

Step-by-Step Process

Step 1 – Assess ICP & Persona Fit

• Review Persona Framework (EPIC 1 – Doc 2):
  • B2B SaaS ICP: Decision-makers on LinkedIn, YouTube, Google Search.
  • B2C Services ICP: Consumers on Instagram, Facebook, Google Local Ads.
• Match channels with:
  • Content format preference (video vs text vs visual).
  • Funnel behavior (search → high intent, social → awareness/engagement).

Step 2 – Define Paid Channels by Funnel Stage

Step 3 – Budget Allocation Framework

1. Default Distribution (starting point):
   • TOFU: 40% (brand awareness, traffic building).
   • MOFU: 30% (engagement, education).
   • BOFU: 30% (conversions, direct leads/sales).
2. Adjust based on maturity:
   • New brands → 60% TOFU, 20% MOFU, 20% BOFU.
   • Mature brands → 25% TOFU, 35% MOFU, 40% BOFU.
3. Channel Split Rules:
   • At least 2 active channels per funnel stage.
   • Max 50% of budget on a single channel unless data proves ROI.
   • Minimum 10–15% reserved for testing new channels/ads.

Step 4 – Geographic & Audience Budgeting

• Split budgets by priority geographies (e.g., 60% core markets, 40% expansion).
• Align spend with audience size & CPM/CPC benchmarks:
  • High CPC platforms (LinkedIn, YouTube) → smaller, targeted spend.
  • Low CPC platforms (Meta, TikTok) → higher reach allocation.

Step 5 – Approval & Finalization

1. Draft Budget Allocation Plan (channel → funnel → geo → spend).
2. Review with Performance Marketing Manager + Client POC.
3. Approve and lock budgets before campaign planning (Doc 2 – Campaign Planning Matrix).

Roles & Responsibilities

Governance

• Budget Review: Monthly budget vs performance comparison.
• Quarterly Channel Audit: Reevaluate mix based on ROI trends.
• Test Spend Governance: 10–15% budget for experiments, reviewed after 30 days.
• Escalation: Overspend or underperformance >15% must be flagged immediately to the Marketing Manager + Client.