Every local advertising campaign should include multiple tactics to boost performance. Best practices include the 3-6-5 formula, which involves three tactics for a duration of six months with a minimum spend of $5,000. So, how do you allocate the budget for a multi-tactic digital campaigns? 

It’s a question we frequently hear from local media sellers. There’s no set-in-stone answer, as many factors impact it. Let’s review some scenarios and how you might recommend budget distribution. 

What Are Multi-Tactic Digital Campaigns?

A multi-tactic digital campaign describes an integrated ad buy that includes multiple ad types. The campaign tactics all have the same goal and complement each other in terms of messaging and design. 

Some of the best tactic combinations include: 

  • Display, streaming audio and OTT/CTV 
  • Geofencing and location-based retargeting 
  • Display, geofencing and video 
  • SEM (search engine marketing), OTT/CTV and display 
  • Geofencing and OTT/CTV 

What Impacts Budget Allocation When Multiple Tactics Are in Use? 

Many things affect how you’ll recommend an ad budget split. These factors should guide your strategy: 

  • The advertiser’s goal (e.g., awareness, foot traffic, product promotions, conversions, sales) 
  • The total amount of budget available 
  • The average cost of the tactic 
  • Who the audience is and where they engage with digital media 
  • The advertiser’s current digital footprint in terms of organic rankings, social media presence and website optimization 
  • Impressions available to reach the audience in that channel (Display typically has more available versus newer tactics like streaming ads, for example.) 

Evaluating all these things will allow you to understand the advertiser’s expectations and goals. With this information, you can make strategic decisions on budgeting. 

Budget Allocation Examples for Multi-Tactic Digital Campaigns 

Now, let’s look at some examples based on commonly bundled tactics for campaigns. 

Geofencing and OTT/CTV 

Geofencing is a unique ad type that serves ads to mobile devices when people are in a digital fence. It relies on targeting “where” instead of “who.” Depending on the location and longevity of the campaign, geofencing can perform very well with the proper budget behind it. 

By adding OTT/CTV to such a campaign, advertisers can reach a defined target market with a media type that’s visual and auditory. These ads are also not skippable, so there’s some level of attentiveness. 

Combining these tactics helps capture attention in a space and reiterates the message when people watch streaming. It can be highly successful, as showcased in this geofencing and OTT case study. 

OTT/CTV will be more expensive than geofencing, so a good split would be 60% for streaming and 40% for geofencing. 

SEM, OTT/CTV and Display 

An integrated campaign with these tactics can support multiple phases of the sales funnel. This type of ad buy should also be long term, as SEM needs time to perform. Here’s how these tactics work together. 

Display ads target customers to build awareness and familiarity. OTT/CTV then reinforces these points with high-quality video. These things support creating buyer intent. 

When the person is ready to act on this intent, they’ll likely head to search. If they see the advertiser’s paid search ads, they may recall the brand and convert. 

A good budget allocation for this campaign would be 20% for display, 30% for OTT/CTV and 50% for SEM. 

Display, Streaming Audio and OTT/CTV 

In this scenario, you’re using multiple types of media — audio, static images and video. This ensures that any audience member receives messaging in many channels, which can boost recall. All three of these tactics can fall into the awareness or consideration phases of the sales funnel. 

Messaging should be foundational to familiarize the audience with the brand and its offerings. It’s a way to build trust and credibility to transform interest into purchases. Display and streaming audio have a lower price point, so that impacts budgeting. 

There’s also the consideration of how a tactic can bring traffic to websites. With display and OTT, there’s always a clickable action to take. Streaming audio may provide this with an image on the platform. CTV ads aren’t clickable but could include a QR code. 

Taking all this into account, a good division of the budget would be 25% for display, 20% for streaming audio and 55% for OTT/CTV. 

Make the Best Budget Recommendations to Support Performance and Advertiser Satisfaction

Becoming a local digital advertising pro involves budget guidance. The more you sell, the more campaign data you have to analyze. You can find insights in performance reporting that would inform future budget recommendations. Providing this to your customers showcases your role as an expert. Plus, campaigns will perform better, leading to renewals and loyalty. 

Don’t forget that radio should also be part of your local advertising mix. Check out our post on radio and digital budget splits to learn more.Â