Data-driven approaches for budget allocation

Building an effective marketing mix is all about leveraging the right data. However, the catch is: which data you can rely on in your budget decisions? This challenge is not new, however, marketers still don’t have the perfect solution… Or do we? Wait till the end of this article to find out! Let’s break down the current solutions for data-driven budget allocation, their challenges, and a cutting-edge solution that’s just hit the market. Cookie-Based Marketing Analytics Platforms: Google Analytics, a classic tool for budget decisions, helps identify top-performing channels and campaigns. By comparing channels, marketers can see where to allocate more budget based on ROI. Yet, by 2024, the basic analytics approach has more challenges than benefits. Challenges of traditional marketing analytics: GDPR and cookie consent; Tracking restrictions like ITP in Safari, iOS 17, Private mode etc. Cross-device/browser As a result, traditional analytics tools undervalue top-of-funnel marketing activities. With current limitations in tracking the entire customer journey, single and multi-touch attribution tools have difficulties accurately assessing the sales impact of early engagement activities like Paid Social, Display, or Video. This often leads to performance reports showing a skewed view, with more conversions attributed to closing campaigns such as retargeting or brand-focused efforts.