SKILL.md
- name:
- ads-budget-allocation
- description:
- Use this skill when allocating paid budget by stage — testing vs scaling vs retargeting, and how the split shifts as spend grows.
Budget Allocation by Stage
Strategic Mindset
Strategy is a series of strategic bets. Work from bottom of the 5-Stage Demand Engine up for quickest ROI (Expand --> Create).
Stage Investment Characteristics
| Stage | Budget Required (Audience Size) | Estimated ROI Timeline | Estimated Difficulty |
|---|---|---|---|
| Create | High | > 90 days | High - requires strong content strategy and unique POV |
| Capture | Moderate | < 45 days | High - usually stiff competition & expensive costs |
| Accelerate/Activate | Low | Varies based on sales cycle | Low - familiar with your product and considering it |
| Revive | Low | < 45 days | Low - familiar with your brand and expressed interest in the past |
| Expand | Low | < 60 days | Medium - existing customers, hard to scale due to small audience sizes |
Fictional Examples
Product Hero (Product-Led Startup)
- Early stage, Series A, large TAM, $30k/month budget
- Focus: Create & Capture (scale net-new and brand)
- Allocation: $15,000 Create (Problem Aware) + $10,000 Capture (Solution Aware) + $5,000 Capture (Product Aware)
Sales Hero (Sales-Led Startup)
- Growth stage, Series C, small TAM, $30k/month budget
- Focus: Create, Capture & Accelerate (ABM, penetrate top 50 accounts)
- Allocation: $20,000 Create (Problem Aware) + $5,000 Capture (Product Aware) + $5,000 Accelerate (Offer Aware)
Key Insight: Product-led companies typically spread budget across Create and Capture. Sales-led companies with small TAM should invest more heavily in Create (brand/thought leadership) and Accelerate (helping sales close deals).
Important Notes
Budget will change over time - these are starting points. As your data improves and you understand what's working, you'll adjust allocations based on performance and business priorities.