Insight · StrategyTOFU

How to split budget across TOFU, MOFU and BOFU

The short answer

There's no universal budget split across the funnel — but there is a principle: the less demand exists for what you sell, the more you must invest in creating it. A brand in an established category with strong search volume can weight toward capture. A brand creating a new category must weight toward awareness and education.

Signals your split is off

  • Rising CAC with stable creative — the pool of ready buyers may be shrinking
  • Shrinking retargeting audiences — too little awareness investment
  • Flat branded search — awareness isn't building memory
  • High awareness, low conversion — middle and bottom of the funnel need work

Starting points by situation

  • Established category, strong search demand — heavier on BOFU, steady TOFU
  • New category — heavier on TOFU and MOFU
  • Strong repeat business — meaningful retention budget
  • Launch period — temporarily heavier TOFU

How to adjust over time

  1. Set KPIs for each stage.
  2. Track pool sizes monthly.
  3. Move budget toward the stage with the best marginal return.
  4. Test before cutting — a holdout tells you what TOFU really contributes.

An example rebalance

A D2C brand spending most of its budget on retargeting and brand search sees CAC rising for three months. Retargeting audiences are shrinking. It moves a meaningful share of budget into prospecting video and creator content, accepts weaker last-click numbers for a few weeks, and watches branded search and retargeting pool sizes. Once those recover, BOFU efficiency usually follows.

Common mistakes

  • Judging TOFU on last-click ROAS
  • Cutting awareness at the first sign of pressure
  • No retention budget
  • Keeping the same split for years regardless of results

Example starting splits

SituationTOFUMOFUBOFU
New brand, new category50–60%20–30%15–25%
New brand, known category40–50%25–30%25–30%
Established brand with search demand25–35%20–30%40–50%

These are illustrative starting points to test, not rules.

What to do next

  • Measure current spend by stage
  • Check retargeting pool trends
  • Run a small upper-funnel test
  • Review branded-search growth

Frequently asked questions

What counts as TOFU spend?

Campaigns aimed at people who don't yet know you — broad video, creators, reach and awareness campaigns.

How do we know if TOFU is working?

Branded search growth, larger engaged audiences, stable or improving new-customer CAC and positive results in holdout tests.

Should retargeting be part of BOFU?

Yes — but keep it capped and measure incrementality.

Is there a perfect funnel budget split?

No — it depends on brand awareness, category and goals; adjust based on results.

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