Marketing budget allocation determines results more than total spending. A $50K/month budget allocated intelligently outperforms $100K allocated poorly.
Here’s how to think about it.
The Allocation Framework
Budget allocation answers: How do you divide spending across channels to maximize case acquisition?
The answer depends on:
- Firm stage (startup vs. established)
- Market position (challenger vs. dominant)
- Case types (volume PI vs. catastrophic)
- Market size (small DMA vs. major market)
Baseline Allocation Model
For a mid-size firm in growth mode:
| Category | % of Budget | Purpose |
|---|---|---|
| CTV | 35-45% | Demand creation, awareness |
| Search (branded) | 10-15% | Capture created demand |
| Search (generic) | 15-20% | Capture market demand |
| SEO | 15-20% | Foundation, long-term |
| Social/retargeting | 5-10% | Reinforcement |
| Creative production | 10-15% | Annual allocation |
This creates a balanced system that generates AND captures demand.
Allocation by Firm Stage
New/Startup Firm
Heavy on demand creation because you need to build awareness.
| Category | % |
|---|---|
| CTV | 40-50% |
| Search (branded) | 5-10% |
| Search (generic) | 20-25% |
| SEO | 15-20% |
| Social | 5-10% |
More generic search (need immediate leads) and heavy CTV (need to build name recognition).
Growing Firm
Balanced approach as brand develops.
| Category | % |
|---|---|
| CTV | 35-45% |
| Search (branded) | 10-15% |
| Search (generic) | 15-20% |
| SEO | 15-20% |
| Social | 5-10% |
Branded search becomes more important as CTV builds awareness.
Established/Dominant Firm
Can rely more on capture, less on creation.
| Category | % |
|---|---|
| CTV | 25-35% |
| Search (branded) | 15-20% |
| Search (generic) | 20-25% |
| SEO | 15-20% |
| Social | 5-10% |
Strong brand reduces creation needs; focus shifts to capturing brand equity.
Allocation by Market Size
Small Market (DMA 100+)
Total budget: $20-40K/month
| Category | Monthly $ |
|---|---|
| CTV | $8-16K |
| Search | $6-12K |
| SEO | $3-6K |
| Social | $1-3K |
Smaller markets require less absolute spend but same proportional allocation.
Mid-Size Market (DMA 50-100)
Total budget: $40-80K/month
| Category | Monthly $ |
|---|---|
| CTV | $16-32K |
| Search | $12-24K |
| SEO | $6-12K |
| Social | $3-6K |
Major Market (DMA 25-50)
Total budget: $80-150K/month
| Category | Monthly $ |
|---|---|
| CTV | $32-60K |
| Search | $24-45K |
| SEO | $12-22K |
| Social | $6-12K |
Top Market (DMA 1-25)
Total budget: $150-300K+/month
| Category | Monthly $ |
|---|---|
| CTV | $60-120K |
| Search | $45-90K |
| SEO | $22-45K |
| Social | $12-24K |
The Creation-Capture Balance
The key allocation decision: how much to invest in creating demand vs. capturing existing demand.
More creation (higher CTV):
- Building brand in new market
- Entering competitive market
- Long-term growth focus
- Premium positioning strategy
More capture (higher search):
- Established brand recognition
- Immediate lead needs
- Cost efficiency priority
- Competitive defense
ROAS improves 24% after 90 days of consistent CTV investment. Creation investments compound over time.
Budget Minimums by Channel
Each channel has effective minimums (see our CTV cost guide for detailed breakdowns):
| Channel | Minimum Effective Budget |
|---|---|
| CTV (small market) | $12-15K/month |
| CTV (mid market) | $25-30K/month |
| CTV (major market) | $40-50K/month |
| Search (per market) | $5-10K/month |
| SEO | $3-5K/month |
| Social | $2-3K/month |
Below minimums, channels don’t generate meaningful data or results. Concentrate budget. Don’t spread too thin.
When to Adjust Allocation
Increase CTV When:
- Entering new market
- Facing new competitor
- Search CPCs escalating
- Building for exit/valuation
- Case types benefit from brand trust
Increase Search When:
- CTV generating branded search lift
- Competitors conquesting your brand
- Immediate lead needs
- Seasonal opportunity
Increase SEO When:
- Long-term horizon
- Organic rankings declining
- Local pack presence weak
- Content gaps versus competitors
Monthly Budget Example
$75K monthly budget, mid-size market:
| Category | % | Monthly |
|---|---|---|
| CTV | 40% | $30,000 |
| Search (branded) | 12% | $9,000 |
| Search (generic) | 18% | $13,500 |
| SEO | 18% | $13,500 |
| Social/retargeting | 8% | $6,000 |
| Tracking/tools | 4% | $3,000 |
Expected results (estimates):
- CTV: 700K impressions, 60 attributed leads
- Search: 120 leads total
- SEO: 40 leads (after 6+ months)
- Total system: ~200 leads/month
- Blended CPL: $375
Creative Production Budget
Separate from monthly media:
| Item | Cost Range | Frequency |
|---|---|---|
| CTV spot (30s + 15s) | $15-40K | Annual + refreshes |
| Landing pages | $2-10K | As needed |
| Social creative | $2-5K | Quarterly |
| Photography | $2-5K | As needed |
Allocate 10-15% of annual marketing budget to creative production.
Measurement and Reallocation
Review allocation monthly based on:
Leading indicators:
- CTV verified visit rate
- Search impression share
- Conversion rates by channel
Lagging indicators:
- Cost per lead by channel
- Lead-to-case conversion
- Cost per signed case
Reallocate quarterly based on performance. But give channels time. 90 days minimum before judging CTV.
Common Allocation Mistakes
Over-indexed on Search
Spending 80%+ on search misses demand creation. You’re fighting for the same limited pool of searchers as everyone else.
Under-funded CTV
$10K/month CTV in a $100K market won’t generate meaningful results. Hit minimums or don’t bother.
SEO as Afterthought
2% to SEO never builds organic presence. Either invest meaningfully or accept you’ll pay for traffic forever.
No Creative Budget
Using the same creative for 3 years. Refreshes maintain performance; stale creative degrades it.
No Integration
Treating each channel independently. CTV + search together outperforms either alone. See our branded search protection guide for integration strategies.
Related Reading
- How Much Does CTV Cost for Law Firms?: Detailed cost breakdowns
- CTV Budget by Market Size: Market-specific recommendations
- CTV Costs, Budgeting & ROI: Complete budgeting guide
References
- MNTN Research. (2023). Increased investment in CTV leads to better performance. https://research.mountain.com/trends/data-reveals-increased-investment-in-ctv-leads-to-better-performance/