Choosing channels on a tight budget

6 minutes · 9 steps · workout 6 of 6 in this module

What you'll be able to do

By the end of this workout, you'll be able to pick two or three channels for a small budget based on where demand already exists, split the budget by cost per order, and set a metric and a decision rule for each channel.

A first look: Five rules for picking channels when money is tight

One: go where demand already exists first. If people search for what you sell (“coffee near me,” “laptop backpack”), search and maps ads catch buyers at the lowest cost per order. If you sell a product people don't search for yet, social has to create the demand. Two: match the channel to the funnel stage you're missing. No one knows you? Awareness channel. Plenty of visitors, few orders? Fix the site before buying more traffic. Three: fewer channels, done well. Two paid channels plus one owned channel is enough for most small businesses. Four: give every channel one metric and a decision rule before you spend: “cost per order under $25 within 30 days, or we cut it.” Five: automated campaigns like Performance Max and Advantage+ need conversion data to learn, so set up tracking (GA4, the Meta pixel or Conversions API) before the first dollar, or the algorithm is guessing.

Example: Corner Coffee's new location: Google local search and Maps ads (demand exists), a geo-targeted Instagram campaign within one mile (awareness), and the app's SMS list (owned). Nothing else for 90 days.

What this workout covers

Five rules for picking channels when money is tight
Case: Where does the first $1,000 go?
Typical starting mixes by business type

A question from this workout: Where does the first $1,000 go?

Corner Coffee just opened its second location, two blocks from a commuter rail station. Nobody in the neighborhood knows it yet. The marketing budget is $1,000 a month. An agency has pitched a TikTok creator campaign; the founder's nephew says Amazon is where everyone shops; a friend suggests a national Meta campaign to “build the brand.”

Monthly searches for “coffee near me” within 1 mile: about 9,000
Instagram users within 1 mile: about 40,000
TikTok creator campaign quote: $1,200 for one video
Average order: $7
Regular customer visits per month: 12

Which plan do you choose for the first 90 days?

The TikTok creator campaign. Awareness first, then everything else follows
Google local search and Maps ads for “coffee near me” within one mile, a small geo-targeted Instagram campaign, and the app's free-pastry signup. Skip national ads, Amazon and the creator video
A national Meta campaign, because a brand needs to be known everywhere
List coffee beans on Amazon so the café gets found there

Pick your answer first, then open the reasoning below.

Show the answer and the reasoning

Answer: B. Google local search and Maps ads for “coffee near me” within one mile, a small geo-targeted Instagram campaign, and the app's free-pastry signup. Skip national ads, Amazon and the creator video

Nine thousand people a month within walking distance are already searching for coffee. That's existing demand at the lowest possible cost per order. Instagram within one mile creates awareness among people who can actually walk in, and the signup turns them into regulars worth $84 a month. The most common mistake is the creator video: $1,200 is more than the whole budget, and views from people across the country can't buy a coffee two blocks from the station. A local business needs local attention.

The other steps work the same way: you decide first, then see why each option is right or wrong.

How you practice here

2 short concept cards
3 multiple-choice questions
1 campaign case with real-looking numbers
2 guided calculations
1 recall question from an earlier workout

Part of the module: The Digital Channel Map

Search, social media, marketplaces, email and messaging: what each channel is good for and where your customers actually spend their time.

More workouts in this module

Programs that include this workout

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