Paid Media · 2026-08-04 · 5 min read
How to split ad budget across markets without guessing
Equal budgets across unequal markets waste money in both directions. A simple framework for allocating by demand and cost.
Splitting budget evenly feels fair and performs poorly. Markets differ in search volume, competition, and cost per click — often by several multiples.
Start by measuring available demand per market, then the cost to capture it. A market with half the demand but a third of the cost may deserve more spend, not less.
Review allocation monthly rather than quarterly. Seasonality hits markets at different times, and a fixed split ignores that entirely.
Finally, protect a small test budget in every market. Cutting a market to zero means losing the data you need to decide whether to return.