# Marketing Budget Allocation

> Congratulations, you've set your Marketing budget. Now where do you allocate those dollars to drive the most cost-efficient impact to the business? Given a fixed dollar budget, this model shows the impact of your marketing spend across 3 main categories: Paid Search, Paid Social, and Events. How effective those channels are for your business determines the Total Marketing Qualified Leads (MQLs) and Blended Cost per Lead (CPL) generated from your budget. If your planned Marketing spend isn't yielding the Top-of-Funnel results to meet your goals, which channel is worth doubling down on?

Published model on Paths: https://getpaths.io/p/marketing-budget-allocation
Values below are the base case of the published snapshot.

## Drivers

- Total Marketing Budget: $100,000.00
- Paid Search Allocation: 40%
- Paid Social Allocation: 20%
- Events Allocation: 40%
- Total Attendance: 500
- Events MQL Rate: 17%
- Paid Search CPC: $4.50
- Paid Social CPC: $1.20
- Paid Search MQL Rate: 2.5%
- Paid Social MQL Rate: 1%

## Formulas

- Events Budget = Total Marketing Budget * Events Allocation  -> $40,000.00
- Paid Social Budget = Total Marketing Budget * Paid Social Allocation  -> $20,000.00
- Paid Search Budget = Total Marketing Budget * Paid Search Allocation -> $40,000.00
- Un-Allocated Budget = Total Marketing Budget - ( Paid Search Budget + Paid Social Budget + Events Budget ) -> $0.00
- Events MQLs = Total Attendance * Events MQL Rate  -> 85
- Events CPL = Events Budget / Events MQLs -> $470.59
- Paid Search Clicks = Paid Search Budget / Paid Search CPC  -> 8,888.89
- Paid Social Clicks = Paid Social Budget / Paid Social CPC  -> 16,666.67
- Paid Search MQLs = Paid Search Clicks * Paid Search MQL Rate  -> 222.22
- Paid Search CPL = Paid Search Budget / Paid Search MQLs  -> $180.00
- Paid Social MQLs = Paid Social Clicks * Paid Social MQL Rate  -> 166.67
- Paid Social CPL = Paid Social Budget / Paid Social MQLs  -> $120.00
- Total MQLs = Paid Search MQLs + Paid Social MQLs + Events MQLs  -> 473.89
- Blended CPL = Total Marketing Budget / Total MQLs  -> $211.02