When thinking about your business strategy, keep in mind the image of a funnel.

The primary task should be speaking to a wider range of potential customers, then narrowing the pipe to address the products to your real customers. 

You’re probably wondering where to find the relevant audience that will ultimately convert, or how to allocate the budget across different campaign objectives.

First things first, the budget allocation depends on the type of business you have.

Let’s think about one of the 2 scenarios a business can find itself in: 

1. If you are new in the online ecosystem, you can be generous with your budget, investing more (60%) in Awareness campaigns, for the first three months, and less in conversions (40%), since you need to consolidate your voice in the industry. After this period and after analysing the result, you can redistribute the budget.

Awareness is good for:

• Reach

• Brand awareness

• Video views

• Store location 

2. If your business is already old in the market, and you have some “historic” data about your potential customers, then you can use the 80/20 rule for your business: 80% of your budget for prospecting new customers, and 20% of your budget for remarketing. 

In this scenario, you can use only one objective, Sales, which is perfect for:

• Sales 

• Catalog sale 

Now that we understand budget allocation, let’s move to the next problem: Where is your relevant audience?

Here are some tips you can consider when thinking about defining your right audience:

• Are there any important/relevant actions people take on my website, such as: page visits, add to cart, initiate checkout, purchase?

• Do I have an email list, mainly newsletter subscribers, or a client list?

• Can I take advantage of my own social pages followers?

• Can I find some common interests that people who buy my products have?

• Is my business selling locally or internationally?

If you answer these questions, you can make some pretty effective audiences for your business, which can be used for both prospecting and remarketing campaigns.