The Efficient Frontier
For every ₹100 of marketing budget, allocate based on channel maturity:
- Proven Winners (50%): Channels with 3x+ ROAS and declining CAC. Double down here.
- Scaling Bets (30%): Channels with 2–3x ROAS, still growing. Increase spend cautiously.
- Experiments (20%): New channels, unproven but high upside. Allocate fixed budget for learning.
Many founders flip this: 50% experiments (chasing hype), 30% proven channels (too conservative), 20% scaling. Flip it.
Common Attribution Traps
- Last-touch bias: Sales call closes deal, but customer discovered you via organic search 3 months ago. All credit goes to sales, zero to content.
- Impression farming: YouTube ads get 100K views, 100 clicks, 1 customer. Looks cheap, actually CAC was ₹1K (hidden in huge spend).
- Channel cannibalisation: Google Ads wins on people who would have found you organically anyway. ROAS looks great, but incremental value is small.