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Why does the allocation of marketing budget a dilemma for any CMO? Why does it stress them so much?


  Here are few challenges that the marketers are currently facing:

  • 98% of the marketers affirm that digital marketing has moved into the mainstream. But only one-third of them have digital techniques incorporated into their marketing operation
  • Two-third of the marketers expect their marketing budgets will continue to grow by 10% in 2016 though the increase in ROI from them is not even close
  • B2B & B2C marketers dedicate nearly the same portion of their marketing budgets to digital commerce

(Source: Gartner CMO Spend Survey 2015-16)   Not only do they struggle with the budget allocation but they also have a whole mountain of real world constraints for budget optimization:

  • Running parallel campaigns may affect Budget Optimization – for instance, a high ROI campaign and a low ROI campaign that need to be run together may reduce revenue
  • Order of running two or more campaigns might affect their ROI; for instance, a radio ad followed by a TV ad about the same product might not add any value as the audience is already well informed
  • Audience reach might get compromised by abandoning the campaign with low ROIs and running only the one with the highest ROI
  • Time period in which campaigns are run might affect their ROI. Campaign A might provide higher ROI in summers while Campaign B might work better in monsoons

  As much as allocating budget is a challenge, optimizing the same while solving for real world constraints makes it more complex.   So what’s the breakthrough?   An Attribution Model can provide a helping hand in the complex situation of multiple campaigns or other marketing activities to the CMOs. The attribution model helps in identifying the activities with high ROI which enables optimal allocation of marketing budget. It is developed using the historical sales data for the past campaigns. Attribution quantifies the influence of each advertisement impression on a consumer’s decision to make a purchase decision


The ROIs calculated from the attribution modelling can be applied to optimize budget when solving for different objectives with different constraints:

  • For instance, for revenue maximization, then I might use a combination of email marketing and SMS campaigns providing discounts to regular customers and social media marketing on LinkedIn to target working professionals.
  • For reach maximization, I would lead with a TV advertisement, a huge Bill-board and a free product sample to newspaper subscribers. Here my marketing activities would not be restricted to a target audience.


A vacation ownership company was burning cash and fast, in an effort to maximize its reach in India through TV ads, newspaper ads, lucky draws, banners, social media ads, you name it they  were trying it. It’s ROI on these campaigns was close to nothing. With Attribution modelling, they were able to identify campaigns with higher ROI at specific customer segment levels. While social media ads worked well with the digital savvy audience driving 30% lift in membership, lucky draws and newspaper ads helped maximize reach amongst non-tech native business and trader community further increasing the membership by 15% in two quarters. The attribution model not only helped in targeting audience in the most effective manner but also increased marketing budget ROI without any additional spend.  

Am I spending enough on Marketing? Am I spending a lot?
Are my campaigns working? Are they getting in extra sales?
Well, if such questions are haunting you, marketing attribution might provide you the answer you seek!  
For more information on Marketing Analytics service click here.

Blog Author: 
Marketing Analytics


Lymbyc, being the world's first virtual analyst has proven its mettle in the industry . Be it the "Most innovative Data science Product" by Aegis or "the top 10 emerging Analytics startups in India to watch out for in 2018" by Analytics India Magazine, Lymbyc is making heads turns and making headlines


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