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As an advertiser, you want to scale your budgets and set yourself up for success. 🚀 You can do so by setting up a full-funnel strategy and allocating your budgets where you need them most.  

Our funnel strategy is segmented into Acquisition, Re-targeting, and Retention. Why do we segment our audiences this way? Each audience is entirely different and requires specific attention. ARR segmentation is a proven-effective marketing strategy that has been shown to help businesses take better control of their accounts and make effective budget allocation decisions.

The different funnel stages:

Acquisition Prospecting: People who don't know your brand at all, you are trying to reach them for the first time! Your goal at this point is to introduce them to your brand. This is the largest audience, as it includes the whole world (or at least your market segment).


Acquisition Re-engagement: People who have had a 2nd or 3rd touch with your brand but didn't reach your site. You want them to enter your website and take a look at your products.

Retargeting: People who have been to your site and engaged with your brand- you want them to purchase from you, and become your customers.

Retention: Your customers! People who have bought from you before- you want them to continue buying from you.

How to create a funnel?

As a general rule, we recommend dividing the majority of your budget (70-80%) to Acquisition, since this is where we find new customers and drive them to our site. The goal is to reach as many new consumers as possible, who are unfamiliar with your brand and retarget those who have the first bite, finally turning them into loyal customers. (retention). 

In order to build a full-funnel strategy,  we suggest allocating about 20% of your budget to both Acquisition Re-engagement and Retargeting. Finally, we recommend allocating approximately 3% of your budget towards Retention. Retention is critical, as you want to stay relevant to your customers: however, as this is the most narrow audience of the funnel, we allocate the smallest budget. We want to stay in contact with our customers, but not spend more on retention than we would on acquiring new customers.


By checking your Madgicx ARR Dashboard, you can see your ROAS performance across your whole funnel and shift your budgets accordingly. Thanks to our ARR Dashboard, it's really easy to get an overall picture of your account and gain key insights. Learn more about the Dashboard here🤗

However, every account is unique: so it is important to analyze the account yourself and see what budget allocation works best for you. For example, if your Acquisition Re-engagement audiences provide significantly better results than your Acquisition Prospecting audiences, you can allocate more budget to re-engagement.

The ARR funnel strategy helps you manage your budget effectively, and treat each part of your funnel with special care and attention.

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